Lisa Mailhot | August 24, 2023
The economy has demonstrated remarkable resilience amid ongoing discussions about a potential economic downturn. What has contributed to this resilience? One significant factor is the consistent strength of employment opportunities and wages. Let's delve into the latest insights regarding these aspects and understand why they are encouraging news for those considering selling their homes.
Our economy has been expanding and generating employment opportunities rather than witnessing the typical job losses associated with recessions. The Bureau of Labor Statistics (BLS) reports that 187,000 jobs were added to the workforce in July alone, marking an increase from the 185,000 jobs created in June. This trend signifies that a growing number of individuals are finding meaningful employment. Notably, the current unemployment rate remains significantly lower than the historical average of 5.7% (as illustrated in the graph below):
A lower unemployment rate signifies that a substantial portion of job seekers are successfully finding work. Steady employment translates to consistent incomes, which in turn contributes to making homeownership a viable consideration.
Furthermore, data reveals a consistent upward trajectory in hourly earnings over the past few years (as depicted in the graph below):
Rising wages equate to increased disposable income, which individuals can either save or allocate toward purchasing a home. This boost in earnings serves as a counterbalance to some of the affordability challenges prevalent in today's housing market. Affordability hinges on three key factors: wages, home prices, and mortgage rates. Given the current higher home prices and mortgage rates, Builder Online succinctly captures the impact of growing wages:
“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.”
For those contemplating the sale of their homes, the combination of a robust job market, rising wages, and the resulting surge in buyer interest brings excellent tidings. This confluence implies a larger pool of potential homebuyers who are equipped to pursue their aspirations of homeownership.
As employment opportunities increase and wages continue to rise, an enthusiastic pool of buyers is emerging, creating a favorable landscape. Let's establish a connection so that you have a reliable guide to assist you through the home-selling process, encompassing elements such as accurate pricing and optimal home presentation.
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