Housing and employment pulled pulled off a remarkable rebound after a tumultuous 2020. Last year, both sectors saw numerous setbacks as homes sat idle on the market while businesses laid off hundreds of thousands of workers. Taking a look at July’s data, we see that 2021 is singing a different tune.
Housing & Employment Pulled Off a Remarkable Rebound
Housing has been among the bright spots in the economy since the COVID-19 pandemic. However, a lack of available homes and rising costs have hindered sales.
Mortgage rates hover around record lows. The low mortgage rates fuels demand in housing as millennials reach the age when they are most likely to settle down and start families.
Generally, housing market dynamics represent a significant indicator of the economy’s health. As a matter of fact, residential development, home remodeling, and related home spending account for nearly a fifth of GDP.
Home Sales Rise During Sellers’ Market
Home values rose across the country in this sellers’ market. Additionally, the pace of new home sales soared earlier this year to levels that have not been since 14 years ago.
Analysts credit a series of factors:
- A mix of record-low mortgage rates
- Increased home demand
- Limited housing supply
- The stifled 2020 real estate year
Housing Inventory Decline Slows
During the pandemic, a good percentage of purchasers flooded the housing market. Thus, the limited housing inventory was crushed by the overwhelming demand. Currently, housing inventory saw 12 straight months of decline.
In July 2021, Realtor.com released its latest statistics. The data shows hints of a positive shift in the market for homebuyers. While real estate prices remain high, new sellers flood the market at near-typical levels.
The inventory of homes currently for sale in the United States fell by 33.5% over the past year. This rate slowed compared to the 43.1% loss in June. Although the rate of inventory decline slowed, the market moves in a positive direction. Current housing inventory remains historically low.
Aside from housing, the American economy gained 943,000 employment in July. According to the Bureau of Labor Statistics, this confirms another month of consistent, positive growth. The 943,000 increase reached the greatest level in almost a year. Plus, unemployment only hit 5.4%, the most significant drop since the coronavirus outbreak began.
July’s employment growth reached the largest peak since August of last year. Back in August 2020, the United States economy added 1 million jobs back. Also, July 2021’s numbers far exceeded experts’ expectations of 870,000 jobs.
In June 2021, analysts revised the number of jobs up to 938,000. This demonstrates the recovery’s rapid speed over the summer. President Biden praised the success of his administration’s economic measures but cautioned that “we doubtlessly will have ups and downs along the way as we continue to battle the Delta surge of Covid.”
Want to know how the latest housing and employment data affect your real estate closing? Get in touch with one of the title and escrow specialists at Plymouth Title Guaranty Corporation.
Information accredited to MBSQuoteline.
Please note: The safety of our staff and clients is our highest priority. Effective immediately, Plymouth Title Guaranty Corp. will be taking the following precautions to limit the spread of the COVID-19 virus:
All purchase transactions need to take place at a Plymouth Title Guaranty Corp. closing office.
- If a party to the closing is not feeling well, please contact your closer before the closing so appropriate precautions can be taken.
- We ask visitors to utilize the restroom in our building upon arrival to thoroughly wash their hands before entering our office.
- Only individuals required to sign and/or deliver documents at closings will be allowed in our office. Specifically, closings will be limited to borrower(s), seller(s), agents, and lenders.
- All pens used in the closing will be given to the client after use.
- All closing rooms will be cleaned and disinfected in-between each closing.
- Those picking up checks at our office will be instructed to call our main line and request to speak to a staff member who will plan for delivery to the lobby or parking lot of our office.
- All staff will refrain from shaking hands before or after closings and ask clients to do the same.
Please be advised that our staffing may be impacted during this unprecedented event. While we are committed to continuing to provide outstanding service, we ask for your patience in the face of this pandemic.