Interesting Employment Dynamic Is Impacting US Home Sales

Prev 1 2 3 4 5 ... 76 Next As America has increased the vaccination rate, the anticipation of Homes are selling at near-record levels, with home prices and rents rising at increasingly unhealthy rates. Many of our readers have asked where all these buyers are coming from, so I went out to find an answer.

Rather than merely focus on our local market (since this housing market behavior is happening all across the US), I have found a pocket of data on FRED that might just have the answers that we seek. It measures the PARTICIPATION RATE in the labor market and segments the results into four age ranges.

First, I have included the list of all homes for sale in Tallahassee, just to affirm that homes are indeed selling like hotcakes.

Homes For Sale In Tallahassee

795 Properties
Page 1 of 67

Employment Dynamic Impacting Housing

As America has increased the vaccination rate, the anticipation of "back to normal" for most businesses has grown. With so many people out of work immediately after the pandemic started last year, one might expect that there would be people jumping at the chance to get back to work.

Apparently not.

Much of today's and recent past headlines have included reports of serious labor shortages and the difficulty in finding people to hire. Some speculate that many of the government programs have increased the ability for people to spend money while also decreasing the need for some to work, but that conversation is not what today's post is about. No, today we're going to look at a statistic called "participation rate" and how it appears to be impacting the housing market in 2021 and beyond.

Keep Up With New Trends In Tallahassee!

Get The Tallahassee Real Estate Newsletter

Subscribe to the Tallahassee Real Estate Newsletter for updates on home sales in Tallahassee, FloridaDon't be the one that doesn't know what's going on when you sell a home or buy a home in Tallahassee.

Other buyers, sellers, lenders, and real estate agents have this critical information, and now you can too!

Get immediate access to our most recent newsletter.

Let more than 30 years of experience work for you with charts, graphs, and analysis of the Tallahassee housing market.

Labor Markets Participation Rates

This graph plots the participation rate for four key age groups in the US labor market. The "participation rate" is the percentage of people who participate in the labor force (meaning they either have a job or are looking for a job).

graph plots the participation rate for four key age groups in the US labor market

The graph clearly shows the labor force's reaction to the pandemic in the first half of 2020. All four age ranges saw an immediate and sharp decline in the percentage of participants in the workforce. Since that time, the vaccination period responses have had differing reactions.

The 55 & Older age range (the purple line in the graph) has seen a continued decline, causing some to speculate that it's group is led by a wave of early retirees. On the other hand, the 25 to 54-year-old group (the green line in the graph) is just slightly below its pre-pandemic level, and this is the group that most influences the housing market.

People aged from 25 to 54 represent the largest housing-market active segment of our population, and the fact that this age group had only a slightly negative response to the pandemic in the labor market is one of the primary reasons the housing market is still going strong. The pandemic has pushed the Fed to keep interest rates low, so the combination of these low rates and a stable economy (for those in the prime homebuying ages) has kept the housing market healthy.

Jobs & Interest Rates

During my 30-year career selling homes in Tallahassee, I have seen the market respond most profoundly to changes in jobs (the ability to pay for a home) and the changes in mortgage interest rates (and how this impacts the monthly mortgage payment). For this reason, we'll keep reporting on the economy.

Right now, we are seeing unemployment decline and labor participation rise, both positive signs for the health of the US housing market. Contrarily, mortgage interest rates have ticked upwards and we're expecting them to move to higher ground sometime in 2022. So these two opposing trends will be competing to see which has the first or greater impact on the housing market in 2022.

If you have been waiting to buy a home, don't miss out on these historically low mortgage interest rates. As I have said quite often in the recent past, these are likely to be the lowest mortgage interest rates you see for the rest of your life!

Recent Housing Market Updates

Top 10 Tallahassee Neighborhoods
If you want to know where homebuyers chose to live in 2021, then this video was produced specifically for you. Follow along as I share the top-ten selling communities in Tallahassee in 2021, with insight on what it costs to live in each neighborhood as well as the number of homes that sold.
Are Wages Keeping Up With Rising Home Prices
Home prices are rising. Mortgage interest rates are rising. Are people earning enough money to buy homes today, or is the home affordability crisis getting worse?
High-End Homes Market Update
Our high-end homes market update reports the strong rate of luxury home sales, but current trends suggest we'll see the high-end of the housing market cool fast as the rest of 2022 unfolds
Economic Outlook For The Housing Market
Joe Manausa gives an update on the economic outlook for Tallahassee and the US housing market. Includes housing market forecast, housing market activity, and new construction analysis, and reveals how Tallahassee compares with the overall US housing market.
Building Permits Reveal Major Housing Crisis
How do we know there is a major housing crisis brewing? Look no further than building permits! This video examines building permits in detail, as the issue of home affordability is going to become one of the most prominent topics for many years in the national media.
6 Housing Market Rumors Debunked (1 Confirmed)
7 different housing market rumors are perpetuated as “FACT” in various forms of "hype." Discussion of this "housing market news" has been ongoing for years, so today, I want to put them all to rest.
US Housing Market Forecast 2022
Complete housing market forecast for 2022 including data on Population, Mortgage Interest Rates, Jobs (The Economy), New Home Construction, Foreclosures & Forbearances, Supply & Demand, Home Prices, and Rental Rates.
Tallahassee Real Estate Report March 2022
The pace of this video moves fast, and I cover more than ten key real estate trends, so you might want to go back to any graph that you want to spend more time on.
Median Home Price Continues Higher - Home Affordability Declines
If you want to understand how prices and values are moving in the housing market, it starts in the middle. Why the middle? Find out in this video!
Home Ownership Is Radically Different For Millennials
This is a simple millennial housing case study that will clearly show that the millennials will face a housing market like no other generation going back to post-World War II.
Are We Overbuilding Again?
I've been asked recently for my opinion on the number of homes being built in the US. Specifically, people are wondering if the ghost of 2006 has come back to bring more homes to the market than what can be consumed?
Why It's Alway About Supply And Demand In Real Estate
It's all about supply and demand. The real estate supply and demand dynamic tells us everything we need to know to forecast home sales in any given area.
Proof Of Runaway Appreciation In Real Estate?
Over the years, we've come to expect "normal" real estate appreciation to be just over 3%, but homes are appreciating much faster than a normal rate. Home values are moving higher fast enough to cause alarm bells to ring, and today's report will show you exactly how the housing market has performed.
4 Important US Housing Market Trends Impacting 2022
Here’s the thing about forecasts, they require a working knowledge of what consumers face when selling and buying homes. It's these pressure points that I'll share with you as I prepare my forecast for 2022.
Interesting Employment Dynamic Impacts Home Sales
Home sales in the United States are vibrant, and we can look to the economy as a big reason homes are selling. I have found a pocket of data on the Federal Reserve Economic Data website that explains the vitality of the US housing market.
How Soaring Home Prices Are Impacting The Housing Market
Report includes three graphs that show just how far home prices have risen as we move towards conditions where home affordability might become the greatest challenge the housing market has EVER embraced.
Foreclosure Wave? The End Of The Mortgage Moratorium And Forbearance
Many claim a foreclosure tsunami will be the cause of a new housing bubble, yet I believe they are a little short-sighted and I have some evidence that shows this is just not going to happen.
Signs Of A Housing Market Collapse?
When we study the US median market rent, we see signs that paint a clear picture of the future of home prices and home values.
New Versus Existing Home Values Creates Bubble?
New Versus Existing Home Values | Is A New Housing Bubble Forming? Have you noticed the difference between new versus existing home values and wondered is a new housing bubble forming?
Home Affordability Crisis - Major Housing Market Shift
Home affordability is plummeting, and this home affordability forecast explains why real estate prices are becoming less affordable with each passing month.
Homeownership Rate Crash #shorts
60 Second Video: Homeownership is going to decline over the next 30 years, as home affordability hits the worst levels seen since the end of World War II. This is a generational shift in the housing market
Housing Shortage Confirmed: Median Market Rent Explosion
The lack of home builder production has home prices and home values soaring, now look at what's happening to rents too!
Multi-Family Properties - Are They Appreciating Fast Too?
In this video, I discuss the status and market projection of the multi-family homes market. The data I will provide show how multi-family properties compare to single-family homes, market behavior, and how much both have appreciated over the past ten years, comparatively.
How Low Will They GO?
Mortgage interest rates are probably the lowest you will ever see in your lifetime, keeping the demand for Real Estate extremely high!
US Homeownership Rate Crash
Homeownership has been high since World War II, but there is a generational shift in the US housing market that is occurring with two key trends that will soon destroy home affordability and then homeownership in the US.
How Often Do Home Prices Fall?
Are home prices falling? Will house prices fall soon? Home prices are soaring, buyers are having to pay above most sellers' asking prices, and the housing market feels just like a feeding frenzy during Shark Week on the Discovery Channel.
Home Affordability Forecast
Real estate prices are moving higher (faster). This is a real estate forecast you need to see. Many have been misinformed about home prices and the housing market and must watch and internalize the message from this video.
Tallahassee Builders Association Real Estate Outlook
The Tallahassee Builders Association meeting where Joe Manausa gives an update on the real estate outlook in Tallahassee. Includes housing market forecast, housing market activity, new construction analysis, and reveals how Tallahassee compares with the overall US housing market.
Central North Florida Home Sales Report
Average home prices, average home values, and average home sizes in each of the 8 counties of Central North Florida
What Do Low Mortgage Interest Rates Really Mean?
Every article or video about mortgage interest rates conveys that rates are low, but do you really know what it means?
Are Home Sales Sustainable At Today's Pace?
The housing market is hot, but is it too hot? Can we keep selling homes at the rates we're seeing today, or is this a case of what goes up, must come down? The answer to are home sale sustainable can be found with a study of historic home sales rates and population growth trends, allowing us to forecast future home sales.
Here's Where Home Affordability Is Heading
There is a generational shift occurring in the housing market that I reveal in this video. I’m talking about how buying a home over the next twenty years will be unlike what previous generations saw since the early 1980s.
How Low Mortgage Interest Rates Are Shaping The Real Estate Market
Historic low mortgage interest rates are redefining the housing market and we will see the impact of today's mortgages last long into the future.
The Truth About The Housing Bubble Of 2021
Will there be a housing bubble in 2021? - If you look at the most active real estate videos on YouTube, you'll find that the forecast for the next real estate bubble is very popular. Is there a housing crisis and will there be a housing crash in 2021? Or is it just sensationalism that drives people to watch these so-called reports? This video exposes real evidence and I will give you data that tells you everything you need to know about a housing bubble in 2021.

Your Local Expert In Tallahassee

When moving to, in, or from Tallahassee, you will fare better if you work with a local expert. We are here to help. If you have further questions on the Tallahassee real estate market, you can leave a comment below, give us a call at (850) 366-8917, or drop us a note and we'll give you the local information needed to ensure a successful, smooth transaction.

As a local born and raised in Tallahassee with a focus on customer service, I promise you'll find great success when working with Joe Manausa Real Estate, just as have our past customers. You can read thousands of their reviews reported on Google, Facebook and Zillow right here: Real Estate Agent Reviews Tallahassee.

The digital marketing guide for small businessesHave you heard about my new book "The Business of Getting Business?" It's a comprehensive guide for small businesses to help them make the move to digital. For those of us who want to survive and thrive in a world where large corporations are taking over, it is a must-read. It's also the perfect guide for how to sell a home in the digital age. You can find The Business Of Getting Business by clicking on any of the trusted retailers below.

Real Estate Agent reveals in Tallahassee, Florida

Think all REALTORS are alike?

Read what people are saying about working with Joe Manausa Real Estate! You can see thousands of real customer reviews reported on Google, Facebook and Zillow at this link: CLICK HERE FOR REAL ESTATE AGENT REVIEWS.

Post a Comment

(850) 366-8917