The spring housing market has been surprisingly active this year. Even withaffordabilitychallenges and a limited number ofhomesfor sale, buyer demand is strong, and getting stronger.
One way we know there are interested buyers right now is because showing traffic is up.Datafrom the latestShowingTime Showing Index, which is a measure of buyers actively touring homes, makes it clear more people are out looking at homes than there were prior to the pandemic (see graph below):
And though theres less traffic than the buyer frenzy of the past couple of years, were not far off that pace.There are a lot of interested buyers checking out available homes right now.
But why are buyers so active at a time whenmortgage ratesarehigherthan they were just last year?
The Job Market Is Growing at a Stronger-Than-Expected Pace
With inflation still high, theFederal Reserve(the Fed) repeatedly hiking the Federal Funds Rate, and a lot of chatter in the media about arecession, it might surprise you just how strong todays job market is. What might be even more surprising is the fact that it appears to be getting stronger (see graph below):
Each month, theBureau of Labor Statistics(BLS)reportshow many new jobs were added to the U.S. job market. The graph above shows 88,000 more jobs were created in April than in March. In fact, the April numbers beat expertprojections. Thats a solid indicator the job market is growing.
Unemployment Is at a Near All-Time Low
Ever since the Fed began fighting inflation, many people expected the low unemployment rate weve seen over the past couple of years to rise but that hasnt happened.
In fact, what has happened is the unemployment rate hasdroppedto 3.4% a 50-year low (see graph below):
With so many people steadily employed and financially stable right now, theyre still able to seriously consider buying a home.
What This Means for You
If youre thinking aboutsellingyour house this year, a market with active buyers is music to your ears. Thats because therell be increased interest in your home when you put it on the market, especially at a time when the number of homes for sale is so low.
To get started, your best resource is an experienced real estate agent. They can help youprice your houseappropriately, navigate the offers youll receive, negotiate effectively, and minimize your stress and hassle.
Bottom Line
There are plenty ofbuyersout there right now trying to find a home that fits their needs. Thats because the job market is strong, and many people have the stable income needed to seriously consider homeownership. To put your house on the market and get in on the action, connect with a trusted Seven Gables advisor today!
