Friday, January 22, 2021

What Experts Are Saying about the 2021 Job Market

What Experts Are Saying about the 2021 Job Market | Simplifying The Market

Earlier this month, the Bureau of Labor Statistics (BLS) released their most recent Jobs Report. The report revealed that the economy lost 140,000 jobs in December. That’s a devastating number and dramatically impacts those households that lost a source of income. However, we need to give it some context. Greg Ip, Chief Economics Commentator at the Wall Street Journal (WSJ), explains:

“The economy is probably not slipping back into recession. The drop was induced by new restrictions on activity as the pandemic raged out of control. Leisure and hospitality, which includes restaurants, hotels, and amusement parks, tumbled 498,000.”

In the same report, Michael Pearce, Senior U.S. Economist of Capital Economics, agreed:

“The 140,000 drop in non-farm payrolls was entirely due to a massive plunge in leisure and hospitality employment, as bars and restaurants across the country have been forced to close in response to the surge in coronavirus infections. With employment in most other sectors rising strongly, the economy appears to be carrying more momentum into 2021 than we had thought.”

Once the vaccine is distributed throughout the country and the pandemic is successfully under control, the vast majority of those 480,000 jobs will come back.

Here are two additional comments from other experts, also reported by the WSJ that day:

Nick Bunker, Head of Research in North America for Indeed:

“These numbers are distressing, but they are reflective of the time when coronavirus vaccines were not rolled out and federal fiscal policy was still deadlocked. Hopefully, the recent legislation can help build a bridge to a time when vaccines are fully rolled out and the labor market can sustainably heal.”

Michael Feroli, Chief U.S. Economist for JPMorgan Chase:

“The good news in today’s report is that outside the hopefully temporary hit to the food service industry, the rest of the labor market appears to be holding in despite the latest public health challenges.”

What impact will this have on the real estate market in 2021?

Some are concerned that with millions of Americans unemployed, we may see distressed properties (foreclosures and short sales) dominate the housing market once again. Rick Sharga, Executive Vice President at RealtyTrac, along with most other experts, doesn’t believe that will be the case:

“There are reasons to be cautiously optimistic despite massive unemployment levels and uncertainty about government policies under the new Administration. But while anything is possible, it’s highly unlikely that we’ll see another foreclosure tsunami or housing market crash.”

Bottom Line

For the households that lost a wage earner, these are extremely difficult times. Hopefully, the new stimulus package will lessen some of their pain. The health crisis, however, should vastly improve by mid-year with expectations that the jobs market will also progress significantly.

Content previously posted on Keeping Current Matters

* This article was originally published here

Wednesday, January 20, 2021

Should I Wait for Lower Mortgage Interest Rates?

Should I Wait for Lower Mortgage Interest Rates? | Simplifying The Market

Historically low mortgage rates are a big motivator for homebuyers right now. In 2020 alone, rates hit new record-lows 16 times, and the trend continued into the early part of this year. Many hopeful homebuyers are now wondering if they should put their plans on hold and wait for the lowest rates imaginable. However, the reality is, acting sooner rather than later may be the actual win if you’re ready to buy a home.

According to Greg McBride, Chief Financial Analyst for Bankrate:

“As vaccines become more widely available and a return to normal starts to come into view, we’ll see mortgage rates bounce off the record lows.”

While only a slight increase in mortgage rates is projected for 2021, some experts believe they will start to rise. Over the past week, for example, the average mortgage rate ticked up slightly, reaching 2.79%. This is still incredibly low compared to the trends we’ve seen over time. According to Freddie Mac:

“Borrowers are smart to take advantage of these low rates now and will certainly benefit as a result.”

Here’s why.

As mortgage rates rise, the increase impacts the overall cost of purchasing a home. The higher the rate, the higher your monthly mortgage payment, especially as home prices rise too. Sam Khater, Chief Economist at Freddie Mac, says:

“The forces behind the drop in rates have been shifting over the last few months and rates are poised to rise modestly this year. The combination of rising mortgage rates and increasing home prices will accelerate the decline in affordability and further squeeze potential homebuyers during the spring home sales season.”

What does this mean for buyers?

Right now, the inventory of houses for sale is also at a historic low, making it more challenging than normal to find a home to buy in many areas. As more buyers hit the market in the typically busy spring buying season, it may become even harder to find a home in the coming months. With this in mind, Len Keifer, Deputy Chief Economist for Freddie Mac, recommends taking advantage of both low mortgage rates and the opportunity to buy:

“If you’ve found a home that fits your needs at a price you can afford, it might be better to act now rather than wait for future rate declines that may never come and a future that likely holds very tight inventory.”

Bottom Line

While today’s low mortgage rates provide great opportunities for homebuyers, we may not see them stick around forever. If you’re ready to buy a home, let’s connect so you can take advantage of what today’s market has to offer.

Content previously posted on Keeping Current Matters

* This article was originally published here

Tuesday, January 19, 2021

This stat is great for comparing properties of different sizes. Just calculate…

This stat is great for comparing properties of different sizes. Just calculate…
This stat is great for comparing properties of different sizes. Just calculate the price per square foot and compare! Need any help? Don't hesitate to reach out. Al Cannistra, Realtor - Texas Premier Realty San Antonio Homes Texas Today Real Estate Group 210-757-0211 www.SanAntonio.Homes www.SanAntonioRealEstate.Blog

* This article was originally published here

Which home office would you rather have in your home? Al Cannistra, Realtor -…

Which home office would you rather have in your home?

Al Cannistra, Realtor -…
Which home office would you rather have in your home? Al Cannistra, Realtor - Texas Premier Realty San Antonio Homes Texas Today Real Estate Group 210-757-0211 www.SanAntonio.Homes www.SanAntonioRealEstate.Blog

* This article was originally published here

This is the Year-over-Year Price for Bulverde, TX. Let's talk about how this…

This is the Year-over-Year Price for Bulverde, TX. Let's talk about how this…
This is the Year-over-Year Price for Bulverde, TX. Let's talk about how this affects your home search! Al Cannistra, Realtor - Texas Premier Realty San Antonio Homes Texas Today Real Estate Group 210-757-0211 www.SanAntonio.Homes www.SanAntonioRealEstate.Blog

* This article was originally published here

Who has been doing work in the garden lately? Al Cannistra, Realtor - Texas…

Who has been doing work in the garden lately?

Al Cannistra, Realtor - Texas…
Who has been doing work in the garden lately? Al Cannistra, Realtor - Texas Premier Realty San Antonio Homes Texas Today Real Estate Group 210-757-0211 www.SanAntonio.Homes www.SanAntonioRealEstate.Blog

* This article was originally published here

What makes you feel secure and comfortable at home? Al Cannistra, Realtor -…

What makes you feel secure and comfortable at home?

Al Cannistra, Realtor -…
What makes you feel secure and comfortable at home? Al Cannistra, Realtor - Texas Premier Realty San Antonio Homes Texas Today Real Estate Group 210-757-0211 www.SanAntonio.Homes www.SanAntonioRealEstate.Blog

* This article was originally published here

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