Furloughed employees are returning to work as cities and states reopen, creating an economic lift that is already sparking activity in the housing market. The unemployment rate fell to 13.3 percent in May compared to April's 14.7 percent, beating economists’ expectations for the recovery. Realtor.com says that economists now think this extra boost could not only rekindle the housing market, but also raise housing prices and ignite bidding wars. But they also warn that there are still rough times ahead as only 10 percent of the jobs lost have been recovered thus far, and white-collar layoffs may continue in the coming months.
An improving economy is turning up the heat on the summer housing market.
The unemployment rate fell to 13.3% in May as more cities and states reopened and many furloughed employees were called back to work, the U.S. Bureau of Labor Statistics announced on Friday. While unemployment is still high, it's less than April's rate of 14.7% and well under the predictions of many economists.
“There are signs that the better-than-expected jobs situation is already having a positive effect on the housing market. We’re seeing more home buyers in the market than we did this time last year," says realtor.com® Chief Economist Danielle Hale. "It’s shaping up to be a hotter-than-expected summer in the housing market."