Recently, we had the opportunity to hear a speech by Chief Economist Ted Jones. His PowerPoint detailed the current state of the Houston, Greater Houston area, and U.S. economies. He described how these economies are related to the real estate market and why it is crucial to watch them.
Currently, there are "more jobs than any time in history" stated Jones. To be exact, 2.62 million net new jobs nationally and all in the past 12 months. With a 1.76 % job availability growth rate in the last 12 months and a 40-year compound growth rate of 1.43%, U.S. jobs are on the rise. This means lower unemployment percentages and a stronger work force. Furthermore, these jobs help fund the real estate market through the opportunities they offer the unemployed and those entering the workforce.
However, home sales decreased by 3.9% in the U.S. these past 12 months and median prices increased by 4.1%. Homes are becoming more expensive. So who buy's these homes?
"They are the #1 home buyers for six years in a row", said Ted Jones. 13.6% of the U.S. population is aged between 25-34 and is responsible for 37% of the homes purchased in the past 12 months. They represent more than one-third of the home buyer’s market. This information helps sellers and anyone marketing their homes target the appropriate audience. In conclusion, we recommend you mainly market millennials and keep an eye on the economy. However, don't forget about the other 63% of home buyers and the effects other markets have on the real estate market.
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