The September Jobs Report issued by the Bureau of Labor Statistics reported that the unemployment rate dropped to 7.9%. Though that percentage is well below what experts projected earlier this year, it still means millions of people are without work and some temporary layoffs could be permanent.
The latest Home Purchase Sentiment Index from Fannie Mae, however, shows how more and more Americans believe the worst is behind us, and their personal employment situation is good. The index revealed:
“The percentage of respondents who say they are not concerned about losing their job in the next 12 months increased from 78% to 83%, while the percentage who say they are concerned decreased from 22% to 16%. As a result, the net share of Americans who say they are not concerned about losing their job increased 11 percentage points.”
Prices Continue to Rise as Inventory Remains Low
As September’s data continues to be reviewed, two trends have maintained through the summer months: Rising prices and shrinking inventory.
As CNBC reports, the median sales price rose to $311,800, or 14.8% over September of 2019. Meanwhile, inventory hit a new low, with only 1.47 million homes available at the end of September, which is a 2.7 month supply. This is a 19.2% annual drop and represents the lowest number since Realtors began tracking inventory in 1982.
New Businesses are Emerging
One positive sign of economic development today is the creation of new businesses. The Wall Street Journal (WSJ) recently reported:
“Americans are starting new businesses at the fastest rate in more than a decade, according to government data, seizing on pent-up demand and new opportunities after the pandemic shut down and reshaped the economy.”
The WSJ also notes that these new businesses will have a positive impact on the overall employment situation, as new businesses “are a critical engine of job creation. Startups have historically accounted for around one-fifth of job creation.”
Bottom Line
Although unemployment remains at a higher rate than initially expected, there is still substantial activity in the real estate market. With inventory low and prices high, the seller’s market remains strong and presents a premium opportunity to connect with clients looking to sell.
