Builders continued to hire more workers in April, though employment among an age cohort important to household formation slipped, according to today’s jobs report, which showed more overall growth than expected.

Residential construction jobs are up 4.1 percent year over year, towering about the overall jobs growth rate of 1.6 percent, said Trulia Chief Economist Jed Kolko, citing data released by the Bureau of Labor Statistics today.

Total residential-construction jobs moved up from a seasonally adjusted 580,200 in March to 586,400 in April, according to the report. In April of last year, the sector supported 572,000 jobs, the report showed.

But that jobs growth lags compared to actual construction growth. Kolko chalks up the discrepancy to the fact that the number of jobs for every construction project is more than normal.

At the same time, today’s report also showed that employment among a cohort that is crucial to household formation, 25 to 34-year-olds, has slipped recently, dropping from 75.6 percent in December 2012 to 75.2 percent in April, Kolko said.

But Fannie Mae Chief Economist Doug Duncan said that the report was positive overall and “better-than-expected.

“The unemployment rate, which dipped 0.1 percentage points to 7.5 percent, truly indicates improving market conditions as a large gain in employment outpaced a decent gain in the labor force. One soft spot was a sizable drop in average weekly hours, which fell for the first time in three months,” he said in a statement.

Duncan added that a survey that Fannie Mae will release next week is expected to show that the housing market “is gradually approaching its sweet spot as the share of consumers who believe that it is a good time to buy remains high while the share of those who think it is a good time to sell continues its upward trend witnessed over the past year.”

“The unemployment rate, which dipped 0.1 percentage points to 7.5 percent, truly indicates improving market conditions as a large gain in employment outpaced a decent gain in the labor force. One soft spot was a sizable drop in average weekly hours, which fell for the first time in three months,” he said in a statement.

Duncan added that a survey that Fannie Mae will release next week is expected to show that the housing market “is gradually approaching its sweet spot as the share of consumers who believe that it is a good time to buy remains high while the share of those who think it is a good time to sell continues its upward trend witnessed over the past year.

Gallup: Latest Data on Homeownership [INFOGRAPHIC]

Lending Standards: Are They Actually Loosening?

In a recent story on MSN Money titled, Mortgage Borrowing Is Getting Easier, it was revealed that:

“Credit is not raining down on would-be borrowers, but it will be a bit more accessible this year.”

The article bases it findings on the Federal Reserve’s January Survey of Loan Officers. Dan Greene of the Daily Mortgage Report addresses the survey:

“The Q4 2012 survey marks the ninth straight survey in which fewer than 10% of banks tightened standards. Many more are loosening instead. It’s a good sign for the 2013 home purchase market, which has shown strong buyer demand and rising home prices. Despite what you may hear from friends and neighbors, the nation’s banks are no longer tightening their respective mortgage lending standards.”

In the article, Cara Hawkins, a production manager at Ameripro Fundingalso weighed in on the subject:

“There are more players in the mortgage buying ‘game’ than in past years, which opens the door to looser credit standards because the appetite for loans on the secondary market is higher. While it is still fairly black and white when it comes to mortgage qualification, I am seeing an increase in more approvable loans than in past years because of the market opening up.”

And a recently released report from FICO/PRMIA, US Consumer Credit Risk Trends and Expectations showed:

Expectations among bank risk professionals for the relaxation of lending standards increased sharply, rising from 12.1 to 19.9 percent

Why Are Lending Standards Easing?

The FICO/PRMIA report revealed two reasons for the industry’s current comfort with the housing market.

1. 83.7% believe that the level of mortgage delinquencies will decrease or stay the same, a significant improvement over last quarter.
2. 70.8% feel that home prices were rising at a sustainable pace.

The Niche Report also covered the FICO/PRMIA report explaining:

“One out of five bank risk professionals now expect the approval criteria for loans to become less stringent, the third highest level ever registered for looser lending standards in the three year history of the FICO survey.”

What Will This Mean for the Real Estate Market?

Dr. Andrew Jennings, chief analytics officer at FICO and head of FICO Labs, said it best:

“The latest survey results, combined with data that indicates the real estate market is improving in many regions, paint a positive picture for a sector of the economy that has been slow to join the recovery. Mortgage lenders have been understandably guarded over the past five years. The improvement in their sentiment should be welcome news, and I wouldn’t be surprised to see lenders cautiously expanding their mortgage and home equity lending businesses.”

What a Homeowner Should Know Before Selling For Sale By Owner

The Homeowner Who Represents Himself is Dumb and

A well-known legal profession axiom:

“The attorney who represents himself is dumb and has a fool as a client.”

We believe this also applies if you attempt to sell your own home as a For Sale by Owner (FSBO). In today’s volatile market, you need an experienced professional!

You and your family need a skilled negotiator

In today’s market, hiring a talented negotiator could save you thousands, perhaps tens of thousands of dollars. Each step of the way – from the original offer, to the possible re-negotiation of that off after a home inspection, to the possible cancellation of the deal based on a troubled appraisal – you need someone who can keep the deal together until it closes.

Here is a list of some of the people with whom your agent will potentially negotiate on your behalf:

• The buyer
• The buyer’s agent
• The buyer’s attorney
• The home inspection company
• The termite company
• The buyer’s lender
• The appraiser
• The title company
• The town or municipality
• The buyer’s buyer
• Your bank (in the case of a short sale)

How do you know if an agent negotiates well?

Realize that when an agent is negotiating their commission with you, they are negotiating their own salary; the salary that keeps a roof over their family’s head; the salary that puts food on their family’s table. If they are quick to take less when negotiating for themselves and their families, what makes you think they will not act the same way when negotiating for you and your family? If they were Clark Kent when negotiating with you, they will not turn into Superman when negotiating with the buyer in your deal.

Bottom Line

You need a great negotiator. We believe that famous sayings become famous because they are true. You get what you pay for. Just like a good accountant or a good attorney, a good agent will save you money…not cost you money.

The Need for a Professional When Selling Your Home

Anyone in the real estate industry for any length of time realizes that the education required and the resources necessary to be a true industry professional have dramatically increased over the last two decades. In today’s volatile market, it is necessary to have a true real estate professional if you want to sell your home for the best possible price in the shortest amount of time – and make sure the deal gets to the closing table!

The National Association of Realtors (NAR) has recently reported that as many as 15% of all deals never make it to closing. Tighter lending requirements, stronger disclosure forms and tougher appraisal standards have all contributed to the more treacherous minefield through which today’s seller must navigate.

The good news is homeowners have realized that attempting to sell their home on their own is an arduous process best left to an industry expert. According to NAR’s most recent Profile of Home Buyers and Sellers, the percentage of sellers selling on their own, known as For Sale By Owners (FSBOs), has dropped in half over the last 20 years; from 19% to 9%.

Bottom Line

If you are selling a home in today’s confusing real estate market, it is best to take on the services of a local real estate expert. He/she will guide you through each step of the transaction thereby increasing the likelihood that there will be fewer inconveniences for you and your family