The Jobs Report, a monthly statement of the employment statistics from the US Department of Labor, might seem not seem like a dull read. But on the contrary, as our economy has improved, we now appreciate and anticipate the Jobs Report each Month.
Steady Economic Recovery Indicated in the Jobs Report
Acting U.S. Secretary of Labor Patrick Pizzella recently announced several encouraging pieces of economic news, based on the July 2019
Employment Situation (Jobs) Report:
He stated, “July’s Employment Situation Report demonstrates the steady and consistent growth of the American economy.
And he added, “The July unemployment rate remained unchanged at 3.7%, marking the seventeenth straight month in which the unemployment rate is at or below 4%.”
That nice unemployment statistic helps account for the fact we are seeing more house-hunters roving around our Winter Park, metropolitan Orlando and other Central Florida neighborhoods.
Corelogic Statistics: Compliments to the Jobs Report
Ralph McLaughlin of Corelogic seems to agree with our optimistic assessment for the economic situation and home ownership. He put it this way:
“Homeownership is considered a crucial step to wealth accumulation. However, the Great Recession tested this long-held belief. From the start of the Great Recession in April 2006 to the first signs of economic revival in March 2011, the CoreLogic Home Price Index (HPITM) declined 33%.”
Likewise he explained, “Thanks to stable job growth, mortgage funding and underwriting, the housing market has recovered from its historic crash.”
Job Growth over Time
Acting U.S. Secretary of Labor Patrick Pizzella commented on the longevity of job growth. He said, “Job creation in July remained strong with 164,000 jobs added, which totals 5.7 million jobs created since January 2017.” Palm State Mortgage knows that such job statistics encourage more people to step up to home ownership. And where did these jobs come from? We found strong private-sector employment situations from several industries such as:
- The education field,
- Health services,
- Professional and business services,
- And financial services industries.
1. A Little Revenge if a Computer Took Your Previous Job!
Let’s break that down a little bit, and focus into the jobs offered: Now you can go back to work because of computers.
For example: 11,000 jobs opened up in the computer systems design (and other related services.) In fact, experts said, “this industry
accounted for about one-third of employment growth in professional and technical services both over the month.” This contribution helped bring the 12-month job gain to 300,000.
2. Feel Like a Pro? Or Are You a Techie?
Likewise, in July, professional and technical services added 31,000 jobs in July.
3. Health Care Industry Thrives
And we must applaud the new staff in the health care industry. There, employment in rose by 30,000 over the month, reflecting a gain in ambulatory health care services (+29,000). It is interesting to know that “Health care employment has increased by 405,000 over the year, with ambulatory health care services accounting for about two-thirds of the gain.”
4. Service, Anyone?
Social Assistance added 20,000 jobs in July. We have seen employment in this industry increase by 143,000 over the year.
More Money for Families: Big News in the Jobs Report
On top of the good news there, we see rising wages, which also count as a good sign for potential homeownership.
Secretary Pizzella announced, “With a 3.2% year-over-year increase, wage growth has now been at or exceeded 3.0% for an entire year. America’s workers are taking home more money in their paychecks, which is great news for families and our economy.”
It’s also great news for real estate market and the beautiful, time-honored tradition of home ownership.
“Average hourly earnings in July rose by 8 cents to $27.98, matching the gain in June, the report said. And here’s an interesting bit of knowledge: “The average workweek of private-sector production and nonsupervisory employees declined by 0.1 hour to 33.5 hours. A little bit more money and a little bit less time at work could result in you affording a house and having the time to enjoy it.
Home Buying Tips: Study These Easy Steps Before Starting to Buy a House
With the release of July’s jobs report, acting U.S. Secretary of Labor Patrick Pizzella noted a coming holiday “With Labor Day a month away, we have not seen an unemployment rate this low on a Labor Day since 1952.”
So as our economic picture brightens and job reports run true or improve, Palm State Mortgage is sharing 5 little tips to help you after you decide if it’s time to househunt–and take on a mortgage.
1. Getting on a Budget
Just because you make a little more money, as the Jobs Report indicated, it does not mean you have to spend it. Save it, and while it is building up, think of this: What is your ideal price range? You might want to use an online mortgage c
“It will help you to figure out the max-monthly payment you can afford. And the calculator will base this on the price of the home plus your down payment, spread out over a 30 year mortgage.
Pretend you already own it. Likewise, “Make sure your monthly budget considers the total mortgage and maintenance costs of a property,” says Maria-Stella Fountoulakis, a realtor at Halstead Property.”
2. Making Your Short List of Non-Negotiable Items (With the Jobs Report in Mind, We Encourage You to Do This Now)
Make a short list of deal-breakers about the home you seek. This does not mean 45 must-have amenities. It means, according to your values, what are the 3-5 top features that would make or break the buying of any house. Remember sometimes, renting or leasing an appartment or condo can be an option that better fits your features or life-style. Not everyone is suited to the responsibilities of home ownership, regardless of the Jobs Report.
Take your time with these requirements. There are no right or wrong answers. Examples of non-negotiables vary according to shoppers, from location, to square footage, to schools, hardwood floors, and closet storage.
3. Hiring A Realtor
With your short list in hand, hire a realtor but not before you make certain they know the area. When you first meet them ask yourself if they have good communication skills and can provide the help you need. Fountoulakis says. “A good realtor will be in your corner until the closing — and, in some cases, beyond.”
If you need a starting point, here is a handy statistic: “Fifty four percent of buyers found their agent from a personal referral or had used an agent they’d worked with before, according to 2014 figures from the National Association of Realtors.” So start by asking friends, family or friends of friends who live in your area of interest for recommendations. If that fails, real estate websites Streeteasy, Trulia and Zillow all have ratings on local realtors.”
Entrepeneur magazine also explained,“An experienced realtor will also have contacts for lenders and real-estate attorneys. A good realtor
will offer tips going in, “such as having a copy of a mortgage pre-approval letter on hand from the loaning bank, to show sellers you’re a serious buyer.”
4. Doing Your Footwork
Now that you know exactly what you want, and you have professional help, “The best way to gauge your options is to visit open houses in the area and get acquainted with the local market.”
Likewise, believe it or not, experts advise you to check out apartments and compare their value with your list. This goes along with being certain about your home buying commitment as well as value for your money in your area. There are many different types of walls for your “Home, Sweet Home” sign.
5. Anticipating Your Closing Costs
A good starting point with planning for your closing costs is to question the realtor about what expects closing costs will be. See one of our explanatory blogs on this issue. Remember, closing costs do not include what you spend to pack and move. Normally, they include the cost of hiring a real-estate attorney to look over your buyer-seller agreement and a home appraiser to evaluate the home before the sale, which is typically paid by the buyer. And, interesting enough, the seller, not the buyer, pays the realtor’s commission.
Finding Home Sweet Home
The above 5 tips will get you started on your home-buying journey. Check out other Palm State Mortgage articles that will help you move from renter to home owner. And remember, you have the current July 2019 Jobs Report as an indicator to encourage you to take the first steps.
One final note from CoreLogic HPI Forecast and Ralph McLaughlin. Earlier this year he referred to our economy in general, and housing specifically as the “Comeback Kid.” We like that comment, and Palm State Mortgage knows a lot of former renters who have, due to employment data within the jobs reports, become comeback kids themselves—and homeowners.
As always, thank you for reading our blog at Palm State, and “Happy House-hunting.”