An improving economy is turning up the heat on the summer housing market.The unemployment rate fell to 13.3% in May as more cities an
An improving economy is turning up the heat on the summer housing market.
The unemployment rate fell to 13.3% in May as more cities and states reopened and many furloughed employees were called back to work, the U.S. Bureau of Labor Statistics announced on Friday. While unemployment is still high, it’s less than April’s rate of 14.7% and well under the predictions of many economists.
“There are signs that the better-than-expected jobs situation is already having a positive effect on the housing market. We’re seeing more home buyers in the market than we did this time last year,” says realtor.com® Chief Economist Danielle Hale. “It’s shaping up to be a hotter-than-expected summer in the housing market.”
Summer has historically been when the housing market catches fire, as buyers bid up prices to secure a home and move before the kids start school in the fall. This year, experts had predicted that the season would be slower than normal, because of the economic turmoil, high unemployment, and fears of the novel coronavirus.
To put it in perspective, just after the Great Recession unemployment reached a high of 10%. May’s rate was higher.
But the economy’s retreat from the precipice is already having an impact on the national housing market.
“Part of why we’re seeing the housing market rebound is because people who would have been shopping in March and April are now…