Latest Jobs Report Hints At Building Boom

The March jobs report from the U.S. Bureau of Labor Statistics contained good news for the economy, as the number of jobs created rose by 215,000. In addition, labor force participation improved for the fourth consecutive month. But the report also offered a glimpse of a potentially positive trend for the housing market. When it comes to the market for single-family homes, affordability conditions have garnered a lot of attention this year. That’s because, in a lot of markets, the number of homes available for sale hasn’t kept up with the number of Americans who are interested in buying a house. Naturally, when there are more buyers than homes for sale, home prices go up. And, while that has been good news for current homeowners – and especially those that fell into negative equity following the housing crash – home price increases and lack of inventory are now a concern for the growing number of potential buyers hoping to purchase a home this year. However, the jobs report shows construction employment rose by 37,000 in March, including a 12,000-worker increase in residential specialty trade contractors. This improvement could be an indication that home builders are beginning to build more new homes, which will help alleviate upward pressure on prices, balancing the market and leading to more favorable conditions for buyers this year. More here.

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