Navigating a Strong Housing Market: A Real Estate Agent's Guide to Selling Your Home

Discussions of an impending recession have persisted for an extended period. However, the economy has displayed remarkable resilience, partly attributed to the consistent robustness in employment opportunities and wages. In this regard, let's delve into the most recent data concerning these factors and explore why their stability brings positive implications for those contemplating the sale of their homes.

More Jobs Are Being Created

Contrary to the anticipated job cuts characteristic of most recessions, the economy has been expanding and generating employment opportunities. As indicated by data from the Bureau of Labor Statistics (BLS), July saw the creation of 187,000 jobs, surpassing the 185,000 generated in June. This trend signifies an increasing number of individuals securing employment. In fact, the volume of job additions has led to an unemployment rate significantly below the historical average of 5.7%, as illustrated in the graph below:

A reduced unemployment rate implies that a majority of those seeking employment are successfully securing positions. With stable employment, individuals also benefit from consistent incomes, a factor that can contribute to their readiness to contemplate homeownership.

People Are Making More Money

Furthermore, the data reveals a fairly consistent rise in hourly earnings over the recent years, as depicted in the graph below:

As wages increase, individuals have a greater amount of disposable income, which they can either save or allocate towards the purchase of a home. This boost in earnings serves to mitigate a portion of the current affordability difficulties within the housing market. Affordability is determined by three primary elements: wages, home prices, and mortgage rates. Given the current elevated levels of home prices and mortgage rates, Builder Online outlines how the upward trend in wages can provide assistance:

"The housing sector has reaped the rewards of a robust economy and a thriving job market. A significant number of individuals who are employed have managed to accumulate savings over recent years, which they have then directed towards a home down payment."

If the idea of selling your house is on your mind, the combination of a robust job market, increasing wages, and the consequent surge in buyer demand is truly promising. This signifies the presence of a broader array of prospective buyers who are well-placed to chase after their aspirations of owning a home.

Bottom Line

Benefiting from the upswing in employment opportunities and escalating incomes, a favorable scenario is unfolding. Consider getting in touch with a nearby real estate agent, as they can provide you with expert assistance throughout the process of selling your house, including tasks like determining an appropriate price and preparing your home for showcasing.