Job growth, stronger economy help housing markets boom
Posted on Wednesday, April 9, 2014 at 9:21:13 AM
Across the U.S., challenging economic conditions, rising home prices and a lack of personal wealth have limited homebuyer activity and put a pinch on housing markets. However, that trend has been bucked in several key locations throughout the country, and the conditions there could be a good sign for other borrowers interested in residential financing.
According to Redfin, a number of regions are seeing listed homes sell quickly, an indication of increased buyer interest. For example, 46.3 percent of all homes sold in two weeks or less in Austin, Texas, followed by 40.9 percent in Seattle.
"Stagnant wages and rising home prices have caused many Americans to reassess what makes sense for their family and their financial future," said Redfin economist Ellen Haberle. "In these eight markets, a booming job market allows professionals to keep their careers on track while relatively affordable cost of living lets incomes stretch further for young families and retirees alike. It is no wonder that more and more Americans are making the move."
The fact that job growth has helped real estate is good for buyers across the country. The Associated Press reported that the onset of spring means more potential job creation, and recent employment data indicated that fewer employees are getting laid off. Overall, this can lead to higher personal wealth and a greater desire to buy homes.