Latest Job Information: What Does It Mean for You and the Housing Market? | Staten Island Real Estate Update


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Latest Job Information: What Does It Mean for You and the Housing Market?  |  Simplifying The Market

Last Friday, the Bureau of Labor Statistics released very encouraging job report. The economy gained 916,000 jobs in March – far more than experienced projections of 650,000 to 675,000. Unemployment has fallen again and is now at 6%.

What does this mean for you?

Our lives are deeply affected by the national economy. The better the economy in general, the better most people in the country will do as well. Here’s a look at what four experts have said to the Wall Street Journal after reviewing last week’s report.

Michael Feroli, JPMorgan Hunting:

“The powerful tailwind of the reopening of economic activity seems to be gathering; although the level of employment in the past month was still 8.4 million positions below that which prevailed before the pandemic, it is reasonable to expect that a majority of those lost jobs will be recovered in coming months. ”

Mike Fratantoni, Mortgage Bankers Association:

“We fully expect this rate of jobs to last for months, and predict that the unemployment rate, now at 6%, will be well below 5% by the end of the year.”

Paul Ashworth, Capital Economics:

“With the vaccine program likely to reach critical mass within the next two months and the next round of fiscal stimulus will have a big boost, there is ultimately real light at the end of the tunnel.”

Jason Schenker, Prestigious Economics:

“People are going back to work and the vaccine is not only inoculating the population, it is clearly inoculating the economy.”

What does this mean for residential real estate?

Today, the biggest challenge for homebuyers is the lack of homes currently for sale. With listing inventory less than 52% from a year ago, supply wars explodes. As a result, home prices are climbing.

One answer to this challenge is to build more homes to meet the demand. The latest job report hopes for new housing construction, and therefore brings hope to buyers as well. Here is what three industrial economists said about the growth of construction jobs revealed in the report:

Lawrence Yun, Chief Economist, National Association of Real Estate Agents:

“Construction jobs grew in March, one of the largest monthly gains ever. This increases the possibility of more home construction and more storage reaching the market in the coming months. The housing market was hot with rapidly rising house prices, but was limited of lack of supply. By employing more workers and building more homes, house prices will move to a manageable level to give more Americans ownership. “

Odeta Kushi, Deputy Chief Economist, First American:

“Excellent report on jobs for housing market in inventory crisis. Residential construction jobs grew 3.9% from pre-2020 recession peak in February 2020. The construction industry remains a labor-intensive industry. We need more hammers to work to build more homes . “

Robert Dietz, Chief Economist, National Association of Home Builders:

“Good jobs in March for housing construction. 37,000 gain from February to March. 3.03 million total employment for home builders and renovators, and more than 49,100 as of January 2020. ”

Bottom Line

An improving economy with declining unemployment will benefit households across the country, as well as the overall housing market.

Content previously posted in Keep Current Things


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