Friday’s April 2016 employment report from the Bureau of Labor Statistics was not encouraging as it reported only 160,000 jobs added during the month. The unemployment rate held steady from March to April at 5%, but everyone knows that number is not representative of the total number of people who are out of work. Meatime, the BLS took down its previously reported estimates for February and March. Which led DS News to ask the following question:
Will the slowdown in labor market be a hindrance to growth in the housing market, or will the will the housing market boom this summer due to the amount of pent-up housing inventory being bought up?
“This weak jobs report follows tepid GDP growth in the first quarter and growing uncertainty about the future by both business and consumers,” Realtor.com Chief Economist Jonathan Smoke said. “The impact of this uncertainty on the spring and summer housing market is not clear. On the one hand, consumers must feel confident about their circumstances and future to make big investments so slowing job growth creates concern. On the other hand, this spring has already produced evidence of substantial pent-up demand rapidly buying up available inventory. If the April report turns into a true declining trend in job creation, we likely won’t see that impact in home sales until the summer.”