Economic Pulse

Housing starts drop to 13-month low in May.

U.S. homebuilding fell to a 13-month low in May and permits tumbled, suggesting the housing market was cooling as surging mortgage rates reduce affordability for first-time homebuyers. 

Housing starts fell 14.4% to a seasonally-adjusted annual rate of 1.54 million units, the lowest since April 2021. Single-family housing starts, which account for the biggest share of homebuilding, tumbled 9.2% to a rate of 1.05 million units in May.

Permits for future home building declined 7% to a rate of 1.69 million units. 


Source: GlobalData


Consumer sentiment slumps to record low.

 

U.S. consumer sentiment plunged in early June to the lowest on record as soaring inflation continued to batter household finances. The University of Michigan’s preliminary June sentiment index fell to 50.2, from 58.4 in May. The figure was weaker than all estimates in a Bloomberg survey of economists, which had a median forecast of 58.1. 

All components of the sentiment index fell this month, driven by inflation fears, with the steepest decline in the year-ahead outlook in business conditions followed by consumers' assessment of their personal financial situation.


Source: GlobalData


U.S. household wealth drops for first time in two years.


U.S. household wealth declined for the first time in two years in the first quarter of 2022 as a drop in the stock market overwhelmed continued gains in home values. As a result, household net worth edged down to $149.3 trillion from a record $149.8 trillion at the end of last year. The decline was driven by a $3 trillion fall in the value of corporate equities, a plunge that has worsened in the current quarter, while real estate values climbed another $1.7 trillion. 

It was the first decline in household wealth since the first quarter of 2020, when the onset of the coronavirus pandemic shook financial markets and caused a short but deep recession.

 

Source: GlobalData

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U.S. Inflation Is Starting To Cool

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U.S. Inflation Rate Climbs To 7.5%

February 17, 2022
The U.S. inflation rate climbs to 7.5% after another sharp increase in consumer prices.

Median sales prices still trend higher

January 15, 2022
It’s been a rough ride for homebuyers lately, as prices have hit the roof with little respite. All of that looks to change soon. As median sales prices continue to climb locally and state wide,

Interest Rates On The Rise

December 8, 2021
Inflation is a red-hot topic right now, and for good reason: In October, the annual inflation rate rose to an alarming 6.2%. That’s the highest it’s hit since November 1990, over 30 years ago, and a steep uptick from the manageable 2% that we’ve enjoyed for the past five years. Translated to your daily life, this means Americans are shelling out more money for just about everything, from gas for your tank to heating bills to groceries and more. Our money simply doesn’t go as far as it used to. So what’s the impact of inflation on housing? Not surprisingly, inflation is influencing the real estate market in a big way, too. According to a Stanford University study, residential real estate has historically been an “investment safe-haven” during inflationary periods. Researchers found that during the 1970s (another moment of surging inflation), home prices rose relative to the size of the economy. This was good news for homeowners and real estate investors, since it meant that their home’s rising value helped offset rising prices elsewhere. If you were shopping for a new home, though, this was a major challenge—and the same may hold true today. This article was republished from Realtor.com Real Estate News. To read more of this article click the link below.
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