Lowest Unemployment Rate in Years

According to the U.S. Bureau of Labor Statistics, unemployment rates are at a record low, with 341 out of 372 metropolitan areas (a whopping 91%) experiencing a drop in unemployment from December 2013 to December 2014. More than half of these areas fall below the national average of 5.4 percent. A still impressive 83% of these areas are benefitting from increased payrolls.

It’s not difficult to see the impact that the labor market has on the housing market. They are symbiotic systems and often depend on the help of the other to thrive. With monthly job gains averaging at 336,000 over the last three months and an steady increase in payrolls, a flourishing job market might lend confidence to first-time buyers that want to commit to a new home. Improvements in credit availability for borrowers and low interest rates are other important factors that will ease the burden of those looking to buy.

The National Association of Home Builders predicts the that we will see a significant rise in the construction of new single-family homes. At the close of 2014, numbers were up 6.7% from the same time last year and are predicted to rise another 26% by the end of the year with an annual total of 804,000 new units. While still under the average of 1.3 to 1.4 million units, it’s definitely a move in the right direction.

David Berson, chief economist at Nationwide Insurance, agrees that “demand is in a position to pick up as the recent acceleration in job growth leads to more household formations”.

Many are looking to Millennials to make strides in the housing market this year. As the older side of the spectrum enters their 30’s, the desire to own a home increases dramatically. Though this generation has suffered at the hands of high debt and sluggish pay, the increase in jobs and wages in the past few months give a more positive outlook for those who are looking to getting their feet wet.

While all signs seem to be pointing in a progressive direction and buyers and sellers are looking hopeful, we all know that change is the only thing you can truly count on. To keep ahead of the curve, stay with us as we keep you up to date on market changes throughout the year to come.
Thinking of making a new commitment in this years’ budding market? We can help. Whether you are looking for more information about upcoming properties in the Fort Lauderdale, Wilton Manors or Oakland Park area, we thrive to provide our customers with the best real estate news, services and market updates. Call us today at 954-592-4120 for a private and free consultation.

For all your real estate needs from buying to selling as well as property management, Gibson Group is always the right choice.

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