Spring is often when homeowners put their homes on the market. It’s considered the best time for sellers, as buyers are out in full force now that the weather is nice.

This year is shaping up to be a great one for sellers, with the housing market looking healthy and ready for a big year. Sellers have plenty to be excited about as they stake “For Sale” signs in their front yards.

Prices rose 5.7% in January, the most recent month with data. It’s a solid increase that is consistent with the way prices have risen over the last few months.

Pending home sales are also on the rise. In February, the Pending Home Sales Index (PHSI) hit a 7‑month high of 109.1. The PHSI is based on pending sales of existing homes in a national sample of sales transactions. An index of 100 is equal to the average level of contract activity during 2001, which had a sales volume of existing homes considered normal for the current U.S. population. For the last 18 months, the index has increased year-over-year—another sign that the market is ready for the summer season.

The job market has helped get buyers in the mood to put a down payment on a new home. According to a private survey released by Automatic Data Processing, more than 200,000 jobs were added to the economy in March.

Those laid off during the economic downturn are now returning to work in large numbers. About 2.4 million people have joined the labor force (those working or looking for work) in the past 6 months. How big of a deal is that? It’s about the same number of people who started working or looking for work in the previous 3 years combined. The U.S. labor force participation rate increased to 63.0% in March, its highest level in 2 years.

U.S. Labor Force Participation Rate

The unemployment rate has been hovering around 5% for months now. Five percent is the magic number for economists, who see it as a sign of full employment and a strong economy.

While all of these indicators are positive signs for sellers, builders are also displaying confidence in the 2016 housing market. Housing starts are a good way to get a pulse on how the construction industry views the market’s prospects. In February, housing starts had their best numbers in 5 months. Home construction starts jumped to an annual pace of 1.18 million units, a 5.2% increase from January.

Buyers, on the other hand, must deal with the persistently tight inventory on existing homes. Homes are keeping those “For Sale” signs up in the yard for some of the shortest periods since before the housing bubble burst. Nationally, properties spent an average of just 59 days on the market in February. Going back to those employment numbers, 37,000 of those new jobs were in construction, which could help ease some of the concerns about the low inventory.

What do you think the rest of the year holds for the housing market? Let us know in the comments.