Increasing Employment Opportunities and Improved Earnings Drive Higher Buyer Interest

Lisa Mailhot  |  August 24, 2023

Buyers

Increasing Employment Opportunities and Improved Earnings Drive Higher Buyer Interest

 

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.

Generating More Jobs

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.

Elevated Earnings

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.

Bottom Line

 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.

 


Recent Blog Posts

Stay up to date on the latest real estate trends.

Buyers

Navigating Lessons from the Real Brokerage Settlement's Shifting Landscape

Lisa Mailhot  |  April 12, 2024

Discover insights into the recent $9.25 million settlement between Real Brokerage and commission suits. Learn about the implications for buyers, sellers, and agents in… Read more

Buyers

Hot Vacation Home Markets Ripe for Investment in 2024

Lisa Mailhot  |  April 12, 2024

Discover the top vacation home markets across the U.S. experiencing remarkable price appreciation in 2024. Learn how to capitalize on these trending destinations as an… Read more

Buyers

New Rules Shine a Light on Cash Deals in Real Estate

Lisa Mailhot  |  April 11, 2024

The U.S. government is tightening regulations to combat money laundering in residential real estate transactions. This blog explores the proposed rules requiring real … Read more

Buyers

A Beginner's Guide to Building Wealth and Financial Wellness

Lisa Mailhot  |  April 10, 2024

Discover how to kickstart your financial journey with expert advice from Tiffany Aliche, The Budgetnista. Learn three essential steps to release financial shame, seek … Read more

Buyers

Embrace Luxury Living in Pasadena's Brantwood for Active Seniors

Lisa Mailhot  |  April 9, 2024

Discover Brantwood, a luxurious 55-unit apartment complex in Pasadena's vibrant Playhouse Village, offering all-inclusive lease plans and boutique hotel-style service… Read more

Buyers

Shifting Grounds in Real Estate After NY Lawsuit

Lisa Mailhot  |  April 8, 2024

Dive into the heart of a groundbreaking antitrust lawsuit in New York that could redefine real estate transactions nationwide. This blog post offers a comprehensive an… Read more

Buyers

Celebrating Endurance and Vision: Lessons from 50 Years in Real Estate

Lisa Mailhot  |  April 5, 2024

Explore the journey and insights of William Raveis, a real estate visionary, who has led his brokerage to success over five decades. Learn the secrets of endurance, in… Read more

Buyers

America's Hottest Housing Markets Signs of Cooling Off

Lisa Mailhot  |  April 4, 2024

Renters often feel limited in making their homes eco-friendly, but there are small steps you can practice to reduce your carbon footprint and live more sustainably, ev… Read more

Buyers

Thriving Through Turmoil: Realtors' Guide to Crisis Management 

Lisa Mailhot  |  April 3, 2024

Learn essential crisis management tips for handling commission uncertainty in the ever-changing real estate landscape. Gain insights from industry expert Julia Lashay … Read more

Let’s Talk

You’ve got questions and we can’t wait to answer them.