This year, the spring property market has been very busy. Even though it’s hard for people to afford homes and there aren’t many for sale, buyer demand is strong and getting stronger.
We know there are interested buyers right now because there are more people coming to open houses. The latest ShowingTime Showing Index, which measures how many buyers are actively looking at homes, shows that more people are viewing homes than before the pandemic (see picture below):
And even though there aren’t as many buyers as in the past few years, we’re not too far behind. There are a lot of people looking at open homes right now who want to buy them.
But why are there so many buyers when mortgage rates are higher now than they were a year ago?
Stronger-Than-Anticipated Job Growth Is Being Seen in the Market
Even though inflation is still high, the Federal Reserve (Fed) keeps raising the Federal Funds Rate, and there’s a lot of talk about a recession in the news, you might be surprised by how strong the job market is right now. The fact that it seems to be getting stronger might be even more surprising (see graph below):
The Bureau of Labour Statistics (BLS) tells us each month how many new jobs have been added to the U.S. work market. The image above shows that in April, there were 88,000 more jobs produced than in March. In fact, April’s numbers were better than what experts had expected. That is a strong sign that the job market is getting better.
Unemployment Is at a Near All-Time Low
Since the Fed started fighting inflation, many people thought that the low jobless rate we’ve seen over the past few years would go up, but it hasn’t.
In fact, the jobless rate has dropped to 3.4%, which is the lowest it has been in 50 years (see picture below):
With so many people steadily employed and financially stable right now, they’re still able to seriously consider buying a home.
Implications for Your Life
If you’re thinking about selling your house this year, you’ll be happy to hear that the market is full of interested buyers. That’s because there will be more interest in your home when you put it up for sale, especially when there aren’t many other houses for sale.
A real estate agent with a lot of knowledge is the best person to help you get started. They can help you set the right price for your house, understand the offers you’ll get, bargain well, and reduce your stress and trouble.
There are a lot of people looking for homes that meet their needs right now. That’s because the job market is strong and a lot of people have steady incomes that let them think about buying a home. Talk to a reputable real estate agent if you want to put your house on the market and get in on the action.