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Instant Reaction: May Jobs Report

The following is NAR Chief Economist Lawrence Yun’s reaction to this morning’s U.S. Bureau of Labor Statistics jobs report for May:

“Although  job gains in May were on the soft side (138,000), the annual figure has been fairly consistent at over 2 million net new job creations. This implies that housing demand, which is more determined by long-term consistent prospects, still remains strong. But home sales may nonetheless not rise commensurately with job gains because of the ongoing lack of inventory. Home construction has to swing higher. The fact that the construction job growth rate is running roughly twice as fast as the overall job creations (2.8% versus 1.5%) indicates more inventory will steadily show up as we proceed through the year.”