The US housing market is showing promising signs of growth. The average home price rose to $412,219 in February 2024, a 6.5% increase from the previous year, research from Redfin revealed. Home sales also saw a boost, with a 2% increase resulting in a total of 337,425 homes sold that month.
Mortgage rates
The interest rate for a 30-year fixed-rate mortgage reached 6.8%, which is still below the peak of 7.8% seen in November 2023, according to Bankrate. With the Federal Reserve expected to cut rates to around 4.6% later in the year, the cost of financing a home purchase should decrease, potentially encouraging more homeowners to sell as mortgage rates fall below 6%.
Claro's homebuilding index
Claro’s homebuilding index, which tracks the job posting growth and demand by homebuilding companies, shows an upward trend in recent months. In March, the US index reached a new peak of 156.9, up by 7.6% from 145.8 in February 2024, indicating a robust job market. If the current trend continues and interest rates decrease as expected, the homebuilding job market will likely continue to have healthy growth throughout 2024.
In a review of top-performing states during the first quarter of 2024, Florida's homebuilding index increased 1.9% from 148.6 in February to 151.5 in March. North Carolina's index also trended upward by 8.2%, rising from 131.5 in February to 142.4 in March 2024. California, however, outpaced both states with a significant increase in its homebuilding index, moving from 133.5 in February to 158.8 in March, representing a substantial 18.9% rise.
Companies that are hiring right now
In March, D.R. Horton, Inc. led the pack with 645 job postings, followed by Lennar Corporation with 561 job postings and TruTeam with 294 job postings. This indicates a robust demand for labor in the industry, suggesting that these companies are expanding their operations to meet the growing demand for homebuilding.
In terms of job roles, demand for both construction and sales roles are high. The most in-demand job titles include Construction Manager, Sales Consultant and New Home Sales Consultant. This suggests that organizations in the homebuilding sector are not only looking for employees to physically build the homes but also professionals who can manage the construction process and sell the finished homes.
Salary trends
Salaries in the homebuilding sector in the US are on a rising trend, according to data from Claro. The average advertised salary in March 2024 was $60,000 annually or $28.85 per hour. When compared to the three-month average of $58,404 annually or $28.08 per hour, the salary in March is approximately 2.7% higher. Similarly, when compared to the six-month average of $57,415 annually or $27.60 per hour, the average advertised salaries in March are about 4.5% higher.
Will the strong growth continue?
As the data from Claro shows, the US housing market is demonstrating strong growth, with rising home prices and sales, and an upward trend in the homebuilding index. The expected decrease in interest rates could further stimulate this growth.
