More Jobs and Better Pay Leads to More Buyer Demand
You have likely heard talk and news about a recession for quite a while now. Even so, the economy has been remarkably resilient. Why? One surprising reason is employment and wages have stayed strong. Let’s review the latest information on each one and why both are great news if you’re thinking about selling your house.
More Jobs Are Being Created
Interestingly, instead of facing the job losses typical of any recession, the economy has been growing and adding jobs.
According to the Bureau of Labor Statistics (BLS), 187,000 jobs were created in July 2023, which is up from the 185,000 created in June 2023. That means more people are finding work. In fact, so many jobs are being added that the
unemployment rate is far lower than the long-term average of 5.7% (see graph below):
A low unemployment rate reflects the fact that most people who want to work are finding jobs. When people have jobs, they have consistent incomes – and that can help set them up to consider homeownership.
People Are Making More Money
The data also shows hourly
earnings have been increasing pretty steadily over the past few years (see graph below):
When wages rise, people have more money to save or potentially use toward buying a home. This increased income helps offset some of the affordability challenges in the housing market today. Affordability depends on three main factors:
home prices,
mortgage rates and wages. With higher home prices and mortgage rates right now, Builder Online
summarizes how growing wages can help:
“The housing market has been a beneficiary of the strong economy and labor market. Many of those employed have saved money over the past few years and used those funds toward a down payment on a home.”
If you’re considering
selling your house, a strong job market, growing wages, and the resulting buyer demand is wonderful news. This means there’s a larger pool of potential buyers out there who are in a position to pursue their dreams of homeownership.
Bottom Line
With more jobs and increased wages creating eager buyers, there’s a lot going in your favor. Let’s connect so you have someone who can guide you through the process of selling your house, from setting the right price to getting your home ready to show.
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