Good News from Goldman Sachs and An Increase in Temp Workers

Jobs increase as investing in the homebuilding industry transitions from “neutral” to “attractive” in Goldman Sachs report.

In a recent Bloomberg article, Real Estate Reporter Prashant Gopal highlighted a Goldman Sachs report that marked US homebuilders an “attractive investment as the housing market starts ‘strong’ recovery.” With the Commerce Department reporting new houses selling at a pace of 369,000 in May, June saw a record plunge in mortgage rates and the continued evaporation of existing homes that led to a 4.7 percent increase in the construction of single-family houses. The recent surge has led Goldman analysts to estimate new-home sales reaching 700,000 in 2014.

According to Gopal, Goldman analysts are connecting the positive recovery to “supportive government policies and a decline in the so-called shadow inventory of homes.” The shadow inventory of homes refers to the supply of foreclosures and shorts sales still projected to hit the market. Arizona, California, Florida, Nevada and Texas report a 15 percent decrease in shadow inventory, while also reporting a 34 percent increase in demand. Goldman analysts attribute this to the supply of foreclosures being swallowed up by investors, “limiting shadow inventory and creating a floor for home prices.” “We expect any further decline in inventory,” write the analysts, “to serve as a platform for price appreciation, further aiding sales.”

In a June article for Bloomberg entitled “Arizona's New Housing Crisis: No Workers,” Gopal also described the impact this increase in new-home building has had on jobs, as Arizona contractors report an unprecedented shortage of skilled workers. One of the places hit hardest over the past few years, Arizona is now “scrambling” for workers to keep up with the demand for new homes. This scramble for workers should be considered in light of the June jobs reports that indicate, according to USA Today, a 25,000 raise in temporary workers—nearly a third of June’s 80,000 payroll gains. As concluded in the report, “many businesses are using contractors and other temp workers on an ongoing basis to better meet fluctuating demand and enlist workers with specialized skills for short-term projects.”

JWilliams Staffing has definitely felt the convergence of these new reports, with new positions and openings pouring in from a variety of locations—most recently including Los Angeles, San Diego, Tucson, Fort Worth, and Denver. Whether you are looking for employees or employment, there could not be a better time to visit JWilliamsStaffing.com.

Southland home sales are on the rise, and JWS is seeing the staffing needs to match!

There have been a rumbling of rumors lately about the Southern California housing market showing  signs of a healthy recovery, and with May’s sales numbers out, the rumors are confirmed! Home sales throughout the Southland (including Los Angeles, Orange, Ventura, San Bernardino, and Riverside counties) show home sales up 21% and the median home price up 5.4% from May 2011 (Los Angeles Times).  Here at JWilliamsStaffing, we’re seeing LA staffing needs unseen since 2008, an additional indicator of a recovery. Check out our current LA jobs for immediate hire.

What’s driving the increase?

While countless articles have stated the Southern California real estate market is rebounding, this is the first time we have substantial proof of a genuine recovery starting to take root. Multiple factors are contributing to the uptick, including:

• Low interest rates: Interest rates are at rock-bottom, and buyers know they can’t stay this low for long. If there’s ever been a time to buy, it’s now, increasing demand for houses.
• Growing consensus that prices have hit rock bottom: Proof that the market has hit bottom is materializing in increased home sales and prices, driving more buyers into the market to get in before prices rise.
• Declining foreclosures: Foreclosures in May were down 19% from LY and foreclosure filings were down 4%. Additionally, foreclosures made up 26.7% of the resale market in May, the lowest level since December 2007. Fire-sale priced foreclosure homes have been a key reason home prices have been driven so low; it’s impossible for a homeowner to compete with the foreclosure next door that’s priced way below market value. With a decrease in foreclosure availability, market value is reestablishing itself at healthy levels, leaving room for profit for current homeowners.

The move-up market is back!

The move-up market is also starting to show signs of life again. Previously, buyers were unable to move up to a bigger home because selling their home at a profit was close to impossible. But with foreclosures down and home sales up, the demand is back, granting current homeowners the benefit of ownership we’ve missed so much: the opportunity to move up to a bigger home once their house has appreciated in value. LA county lenders have confirmed this, stating that they are seeing more customers with equity in a current house looking for loans to move into a bigger house. Move-up buyers and sellers keep the market active and are critical to a sustainable recovery.

Where will we see growth?

New-home construction. Builders are keen on the real estate recovery and are positioning themselves to capitalize on the influx of buyers it promises.  While foreclosures have practically obliterated new-home sales over the past 5 years, new-home sales are now on the rise, and JWilliamsStaffing have the real estate staffing needs to prove it.  JoAnne Williams, chief executive of JWilliamsStaffing in Irvine, confirms that builders have added substantially more temp-to-hire positions than last year, indicating increased permanent job creation in the future.   Specializing in LA staffing and staffing all over California, we have openings for immediate hire. Visit our job postings for openings near you, and apply online.