The unemployment rate in San Diego County is nearing a record low. Data gathered over the 12-month period of April 2017 through April 2018 shows that the county added 32,100 jobs. The overall unemployment rate in San Diego County dropped from 3.2 percent in March to 2.9 percent in April, which is the lowest rate since December 1999.
The San Diego Market
These numbers are significant, and positive job growth has been seen throughout California. San Diego County remains one of the strongest regions, however, as it has produced roughly 9 percent of the new jobs in the state in the past year. The amount of jobs went up in 10 of the 11 nonfarm industry sectors studied, and it’s not just low-paying jobs being created. San Diego especially showed really positive growth in the high-paying professional and business services sector. Software development, registered nurses and retail salespeople are among the fastest-growing sectors.
How Wages Are Affected
More jobs haven’t necessarily equated to higher wages just yet, though it really varies from job to job. The more employees are in demand, the better pay they will see as some industries are actually seeing a shortage of qualified workers to fill needed positions. “With an unemployment rate below 3 percent, it’s no wonder why firms are having trouble finding qualified employees in the job market,” said Sean Karafin, who is a vice president of of the San Diego Regional Chamber.
Mortgage Industry Impact
The question for me is how does this positive job growth impact the real estate and mortgage industries? The answer is quite a lot. We’re continuing to see more and more development throughout San Diego County. Increased jobs mean that more quality housing is needed. Currently, there is a housing shortage in the respect that the demand outweighs the supply. This has driven up home and rent prices considerably in recent years. Experts speculate that home values may plateau at some point, but as of now there’s no end in sight.
This means potential home buyers who are qualified to buy are looking to take action while mortgage interest rates and home prices are on the rise, though it must be noted that interest rates are still quite low overall. Decreasing unemployment rates in the county show that jobs are stable and that makes applicants more appealing to mortgage lenders. It is a win-win scenario because borrowers can secure the home loans they need while lenders are limiting their risks.
Your San Diego Mortgage Resource
If you are looking to buy a home, refinance your current mortgage loan or cash out some equity you’ve earned in recent years, contact Transparent Mortgage today for more information and to get started on the loan pre-approval process. Call us today at (619) 929-0199.