As a member of Leading Real Estate Companies of the World, we are privy to global economic insights from LeadingRE’s Chief Economist Marci Rossell, who takes complex economic issues and makes them relevant to buying and selling real estate. In this edition, we are covering the Market for Second Homes.
The Market for Second Homes
The market for second homes in the U.S. has been stable due to two very important decision-driving factors; wealth accumulation and job security.
Stock market gains and dividends have risen 10% since the beginning of this year. This results in people feeling very good about their wealth accumulation.
Looking at job stability and income security, the unemployment rate doesn’t tell you the entire story. While the unemployment rate is at less than 5%, digging deeper into the numbers provides a total sense of how healthy the job market is right now.
• The number of job openings is currently at 6.2 million. This number is three times higher than it was in 2010. Quit Rates
• Quit rates are at their highest level since data began being collected in the year 2000. This provides a measure of an employee’s willingness to leave their job and look for something new.
Domestically, the things that matter for people’s decision to buy a second home — their wealth accumulation and their job security — are at very strong levels.
Value of the U.S. dollar is also important
The value of the U.S. Dollar has increased dramatically since it hit a low in 2011. In the last year, the value of the dollar has decreased slightly, eroding some of that international purchasing power. However, the value of individual currencies can sometimes tell a different story.
Contact a real estate professional for more market insights.