More jobs and better pay leads to more buyer demand
Since quite some time, there has been talk of a recession. The economy has shown remarkable resilience. Why? One reason is that wages and employment have remained strong. We’ll look at the most recent information on both and why they are good news for anyone thinking of selling their house.More jobs are being createdInstead of experiencing the typical job losses that come with any recession, the economic growth has led to more jobs. According to the Bureau of Labor Statistics, 187,000 new jobs were created in the month of July. This is an increase from the 185,000 jobs created in June. This means that more people are finding jobs. A low unemployment rate means most people are finding work. People are Making More MoneyAnd data shows that hourly earnings have been steadily increasing over the last few years (see graph). This increase in income helps to offset some of the affordability issues in the housing market. Affordability is influenced by three main factors, including wages, home prices and mortgage rates. Builder Online summarizes the impact of rising wages on the housing market: “The housing market is a beneficiary from a strong economy and labor markets.” Many employed people have used their savings to pay for a downpayment on a house in the past few years. It means that there is a larger pool out there of potential buyers who are in a better position to pursue their dream of homeownership. Contact a local agent to help you with the selling process, from setting a price to preparing your home to be shown.
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