Housing MarketJob MarketSellers Market April 10, 2021

Latest Jobs Report: What Does It Mean for You & the Housing Market?

Last Friday, the Bureau of Labor Statistics released a very encouraging jobs report. The economy gained 916,000 jobs in March – well above expert projections of 650,000 to 675,000. The unemployment rate fell again and is now at 6%.

Lynne MacFarlane Blog - What does job market mean to real estate market?

What does this mean for you?

Our lives are deeply impacted by our nation’s economy. The better the economy is doing overall, the better most individuals in the country will do as well. Here’s a look at what four experts told the Wall Street Journal after reviewing last week’s report.

Michael Feroli, JPMorgan Chase:

“The powerful tailwind of the reopening of economic activity appears to be gathering force; while the level of employment last 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 recouped in coming months.”

Mike Fratantoni, Mortgage Bankers Association:

“We fully expect that this pace of job gains will continue for months, and anticipate that the unemployment rate, now at 6%, will be well below 5% by the end of the year.”

Paul Ashworth, Capital Economics:

“With the vaccination program likely to reach critical mass within the next couple of months and the next round of fiscal stimulus providing a big boost, there is finally real light at the end of the tunnel.”

Jason Schenker, Prestige Economics:

“People are getting back to work and the vaccine isn’t just inoculating the population, it’s 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 down 52% from a year ago, bidding wars are skyrocketing. As a result, home prices are climbing.

One answer to this challenge is to build more homes to satisfy the demand. The latest jobs report gives hope for new housing construction, and therefore brings hope to buyers as well. Here’s what three industry economists said about the increase in construction jobs revealed in the report:

Lawrence Yun, Chief Economist, National Association of Realtors:

“Construction jobs boomed in March, one of the largest monthly gains ever. This raises the prospect for more home building and more inventory reaching the market in the upcoming months. The housing market has been hot with fast rising home prices but has been constrained by a lack of supply. By hiring more workers and building more homes, home prices will move to a manageable level to give more Americans a shot at ownership.”

Odeta Kushi, Deputy Chief Economist, First American:

“Great jobs report for a housing market in an inventory crisis. Residential construction building jobs increased 3.9% from pre-2020 recession peak in Feb. 2020. The construction industry remains a labor-intensive industry. We need more hammers at work to build more homes.”

Robert Dietz, Chief EconomistNational Association of Home Builders:

“Good job numbers in March for residential construction. 37,000 gain from Feb to March. 3.03 million total employment for home builders and remodelers, and up 49,100 from Jan 2020.”

Bottom Line

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

Lynne MacFarlane Real Estate advisor

If you’re a buyer I’ll share interesting stats in areas where you might consider in investing today!

Lynne Watanabe-MacFarlane, MCDM, SRES, SRS

  • Master of Communication Digital Media/Marketing, University of Washington, Seattle
  • Senior Real Estate Specialist – Advance Certification, National Association of Realtors
  • Seller Representative Specialist – Advance Certification, National Association of Realtors

PFAC Silicon Valley affiliate (Professional Fiduciary Association of California) #1631 

 

 

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Intero Real Estate Services | Berkshire Hathaway affiliate

Lmacfarlane@intero.com

 

DevelopmentinvestorsJob MarketSan JoseSanta Cruz County May 1, 2019

Opportunity Zones – Good For Investors, Developers, Jobs and You

What are Opportunity Zones?

An Opportunity Zone is an economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment. Localities qualify as Opportunity Zones if they have been nominated for that designation by the state and that nomination has been certified by the Secretary of the U.S. Treasury via his delegation of authority to the Internal Revenue Service. Frequently ask questions & more about opportunity zones  here.

How Can I benefit learning about them?

Opportunity Zones may benefit rising neighborhoods first – these areas have potential to stabilize and revitalize “distressed neighborhoods” and surrounding communities by inviting private investment capital through a series of tax benefits.

Opportunity Zones – Are there any in Silicon Valley?

YES!

Here’s a map of the designated qualified opportunity zones. These zones demonstrate the anticipated ability to revitalize neighborhoods and get even more people working.

Opportunity Zones – Santa Clara County (San Jose)

Opportunity zones are also located “over the hill” in Santa Cruz. As previously mentioned in my previous blog post, there are many new developments in Santa Clara county and Santa Cruz county.

Opportunity Zones – Santa Cruz County

Opportunity Zone investments can attract new businesses, thereby potentially generating millions, if not billions, in economic development and create jobs in these communities. (Forbes, 2018)

Call me today to discuss new investment opportunities that are noted to be in the areas “path of progress”. 

Lynne Watanabe MacFarlane, MCDM

Intero Real Estate Services | Berkshire Hathaway affiliate

831.346.2743 mobile

lmacfarlane@intero.com