This week we have some real estate news highlights to pass along. The below is a compilation of recent headlines from a national real estate perspective. These topics typically relate to the economy, jobs, or real estate, and are important because these trends oftentimes impact the real estate market.
227,000 Jobs Added in October. According to the ADP and Moody’s Analytics National Employment Report, employment increased by 227,000 jobs from September to October. Notably, construction increased by 17,000, which correlates to the housing market. According to the article, “ADP Research Institute Vice President and Co-Head Ahu Yildirmaz said despite a significant shortage in skilled talent, the labor market continues to grow. ‘We saw significant gains across all industries with trade and leisure and hospitality leading the way,’ Yildirmaz said. ‘We continue to see larger employers benefit in this environment as they are more apt to provide the competitive wages and strong benefits employees desire’” (https://www.housingwire.com/articles/47269-adp-economy-adds-227000-jobs-in-october).
The National Association of Realtors released its 2018 Profile of Home Buyers and Sellers. This is a fascinating snapshot of the national real estate market, complete with statistics, characteristics of homes purchased, the home search process, financing, and information on real estate professionals. Here are some of the highlights:
- First-time buyers made up 33 percent of all home buyers, a decrease from last year’s 34 percent.
- Sixty-three percent of recent buyers were married couples, 18 percent were single females, nine percent were single males, and eight percent were unmarried couples.
- Twelve percent of home buyers purchased a multigenerational home, to take care of aging parents, because of children over the age of 18 moving back home, and for cost-saving.
- Eighty-seven percent of buyers recently purchased their home through a real estate agent or broker.
- Ninety percent of buyers would use their agent again or recommend their agent to others.
Take a look at the full report here: https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers
Homeownership Rate Increases. The Census Bureau reports the national homeownership rate was 64.4% in the third quarter, which is a half-percentage point higher than a year ago. A realtor.com article notes, “Still, the meager recovery to this point puts the homeownership rate only back to 1995 levels, well before the run-up to the bubble. That suggests it may be possible for many more Americans to become owners, if housing market conditions ease further” (https://www.realtor.com/news/real-estate-news/american-homeownership-increases-housing-market-looks-balance/?iid=rdc_news_hp_carousel_theLatest).