Feb 6, 2023 | Financial Reports
Last week’s economic reporting included readings on home price growth from S&P Case-Shiller and the Federal Housing Finance Administration. Monthly reports on job growth and unemployment were released by the federal government and ADP. Weekly readings on mortgage rates and jobless claims were also released.
S&P Case-Shiller HPI: Home Prices Drop in November
S&P Case-Shiller Home Price Indices revealed that U.S. home prices fell for the fifth consecutive month in November. The National Home Price Index fell by -3.1 percent year over year in November as compared to a positive reading of 2.8 percent home price growth in October. Miami, Florida, Tampa, Florida, and Atlanta, Georgia held the top three places in the 20-City Home Price Index. Detroit, Michigan was the only city to post a positive reading for home price growth in November’s 20-City Home Price Index.
The Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, reported that prices of homes owned or financed by the two government-sponsored enterprises fell by 0.10 percent in November. Analysts expect that home prices will continue to fall in the coming months.
Mortgage Rates and Jobless Claims
Average fixed mortgage rates fell last week. Freddie Mac reported that the rate for 30-year fixed-rate mortgages fell by four basis points to 6.09 percent. Rates for 15-year fixed-rate mortgages fell by three basis points to 5.14 percent.
183,000 first-time jobless claims were filed as compared to the expected reading of 195,000 new jobless claims and the previous week’s reading of 186,000 first-time jobless claims filed. 1.66 million continuing jobless claims were filed as compared to the previous week’s reading of 1.67 million ongoing jobless claims filed.
Public and Private Sector Job Growth
The federal government’s Non-Farm payrolls report for January posted 517,000 jobs added as compared to the expected reading of 187,000 jobs added and December’s reading of 260,000 jobs added.ADP reported 106,000 private-sector jobs added in January as compared to expectations of 190,000 jobs added and December’s reading of 253,000 private-sector jobs added.
The national unemployment rate for January was 3.4 percent; analysts expected an unemployment rate of 3.6 percent and December’s unemployment rate was 3.5 percent.
What’s Ahead
This week’s scheduled economic news includes readings on consumer sentiment, inflation, and weekly readings on mortgage rates and jobless claims.
Feb 2, 2023 | Financial Reports
U.S. home prices continued to fall in November according to S&P Case-Shiller’s month-to-month national and 20-city home price indices, but home price growth rates remained in positive territory year-over-year. The national home price index posted a 7.70 percent year-over-year home price growth rate as of November 2022.
20-city home price index posts 5th consecutive month-to-month decrease in November
The S&P Case-Shiller 20-city home price index for November reported that the top three cities for home price growth were Miami, Florida with a year-over-year home price growth rate of 18.4 percent; Tampa, Florida followed with a year-over-year home price growth rate of 16.9 percent. Atlanta Georgia reported a 12.7 percent growth rate for year-over-year home prices.
Home prices tracked in the 20-city home price index rose at a 6.8 percent year-over-year- pace in November as compared to year-over-year home price growth of 8.6 percent posted in October 2022. 19 of 20 cities included in the S&P Case-Shiller 20-city home price index reported lower home prices in November; only Detroit Michigan reported a gain in month-to-month home price growth.
FHFA: prices drop for homes owned or financed by Fannie Mae and Freddie Mac
In related news, the Federal Housing Finance Agency, which oversees government-sponsored mortgage enterprises Fannie Mae and Freddie Mac, reported that home prices for homes financed or owned by Fannie Mae and Freddie Mac dropped by 0.10 percent month-to-month and rose by 8.2 percent year-over-year.
Nataliya Polkovnichenko, Ph.D. and Supervisory Economist in the FHFA’s Division of Research and Statistics, said: “ U.S. house prices were largely unchanged in the last four months and remained near the peak levels reached over the summer of 2022. While higher mortgage rates have suppressed demand for homes, low inventories of houses for sale have helped maintain relatively flat house prices.”
Changes in seasonally adjusted home price changes ranged across the nine Census Divisions from -1.1 percent in the Pacific Division to +0.5 percent in the West North Central Division. Year-over-year home price gains ranged from +2.4 percent in the Pacific Division to +12.0 percent in the South Atlantic Division.”
Data included in the FHFA House Price Index are gathered from reports on single-family home prices ranging from the 1970s to the present and include single-family home transactions in all 50 states and more than 400 U.S. cities.
Jan 30, 2023 | Financial Reports
Last week’s economic reporting included readings on new and pending home sales, inflation, and consumer sentiment. Weekly readings on mortgage rates and jobless claims were also released.
New home sales increase in December
The Commerce Department reported new home sales rose to a seasonally-adjusted annual pace of 616,000 sales in December as compared to the expected pace of 615,000 new homes sales and November’s revised reading of 602,000 annual sales. December was the third consecutive month that the pace of new home sales rose, but new home sales remained well below the 1.04 million sales peak reported in August 2020.
Pending home sales rose by 2.5 percent in December, which outpaced expectations of a one percent decrease in pending sales and November’s seasonally-adjusted annual decrease of -2.6 percent in pending home sales. New home sales are 26.6 percent lower than they were one year ago.
Month-to-month inflation slows in December
The Commerce Department reported that month-to-month inflation rose by 0.1 percent in December, which matched November’s month-to-month reading. Core inflation rose by 0.1 percent in December to 0.3 percent and matched analyst expectations. Core inflation readings exclude volatile food and fuel sectors that comprise major expenses for many U.S. households.
Year-over-year inflation rose by 5.0 percent in December as compared to November’s pace of 5.5 percent. Core inflation rose 4.4 percent in December, which matched analyst expectations, but fell short of November’s year-over-year reading of 4.7 percent for core inflation.
Mortgage rates, initial jobless claims fall
Freddie Mac reported lower average mortgage rates last week as the rate for 30-year fixed-rate mortgages fell by two basis points to 6.13 percent. The average rate for 15-year fixed-rate mortgages fell by 11 basis points to 5.17 percent.
First-time jobless claims fell to 186,000 filings as compared to the expected reading of 205,000 initial jobless claims and the previous week’s reading of 192,000 new jobless claims filed. Continuing jobless claims rose to 1.68 million ongoing claims as compared to the previous week’s reading of 1.66 million continuing jobless claims filed.
Consumer sentiment strengthens in January
The University of Michigan’s Consumer Sentiment Index rose to an index reading of 64.9 in January, which surpassed the expected reading of 64.6 and December’s final index reading of 64.6. Readings over 50 indicate that a majority of consumers surveyed have a positive outlook on the economy. Falling gasoline prices contributed to an improved consumer outlook, but grocery prices remained high.
What’s ahead
This week’s scheduled economic reporting includes readings on U.S. home prices, The Federal Reserve’s Federal Open Market Committee meeting, and Fed Chair Jerome Powell’s scheduled press conference. Labor-sector reports on job growth and the national unemployment rate will also be released.
Jan 27, 2023 | Financial Reports, Real Estate
Photo by geralt on Pixabay
The current real estate market is not showing a lot of signs of life. That’s not to say it isn’t experiencing its own moment of growth and development, but the recent sell-off of entire properties seems like an abrupt halt to activity. Maybe it’s the fact that new buildings are being built all day long and old properties must be getting through the hiccup before they can be officially listed again? Or maybe it’s just our constant need to know what’s going on? Regardless, prospective homebuyers should take heart in the fact that most properties that have been listed recently did not have foreclosures on them! In other words, there are still plenty of properties for sale in the current market that haven’t been sold yet.
What’s really going on with the market?
Inventory levels in the market are still pretty high, so far that it’s hard to tell how the transition to a new model will progress. There’s no telling how quickly the tech transition will occur, and no one knows when a new model will actually be “installed.” So, there’s still no official figure for how much inventory there will be. Some experts believe it will reach as high as 50% of office space in hotels and casinos. While that number includes land and building assets, it does not include furnishings, mechanical and electrical items, or commodities such as copper, gold, or silver. Real estate brokers and investors should be prepared to absorb this inventory at their own expense.
Interest in new construction
Construction continues to be a prominent interest of many homebuyers. There are still a large number of empty units in many city blocks, and when new construction begins, it’s expected to be quite a bit higher than the average price of existing homes. It’s not just the amount of new construction that’s attracting interest, but also the level ofConstruction continues to be a prominent interest of many homebuyers. There are still a large number of empty units in many city blocks, and when new construction begins, it’s expected to be quite a bit higher than the average price of existing homes. It’s not just the amount of new construction that’s attracting interest, but also the level of interest from the general home buyer community. If enough people are interested in new construction, it can easily spark interest from other homebuyers as well.
Homes that aren’t on the market yet
When a home isn’t on the market yet, it’s typically because it’s being worked on or in storage. The owners can’t get it ready for market, so they’re waiting for a time when they can list it. In many cases, that time will be in the fall. If you have a home listed, it’s best to be ready with a strong show of proof that you can match the other properties on the block. If the other properties on the block have been listed for a while, you may be able to negotiate a better price.
Real estate agents who can’t sell
If you’re able to find a good real estate agent, you’re in luck. Unfortunately, most of them probably have a hard time finding work. In many cities, the vast majority of real estate associations have no formal training in marketing or property management. At best, they have a few years of experience managing unsold inventory and a general knowledge about how to negotiate with tenants. At worst, many of them don’t even live in the city they’re in! If you have to drive to many cities to find a good real estate agent, you might as well find a new profession. Many homebuyers turn to Realtors Service and Realtor.com to find good local real estate agents. These websites estimate the cost of hiring a real estate professional at various stages of the ownership process. If you’re in a tough spot, you can always email any of our team members to get a competitive price on a competitive job.
Lack of inventory
Many homebuyers worry about the lack of inventory in their area. When a home is listed for a long time, it’s pretty evident that people are going to want it. When there aren’t any homes left to buy, there’s a good chance that you’ll be the one left to sell the home. If you don’t have any inventory to sell, there’s nothing to stop you from living in the home for years to come. You can still take advantage of some of the favorable interest rates on unsold inventory and negotiate a lower price on an unsold home. It’s important to keep your eye on the prize, though. If you don’t have any inventory to sell, you can still take advantage of some of the favorable interest rates on unsold inventory and negotiate a lower price on an unsold home. It’s important to keep your eye on the prize, though. If you don’t have any inventory to sell, you can still take advantage of some of the favorable interest rates on unsold inventory and negotiate a lower price on an unsold home. It’s important to keep your eye on the prize, though. If you don’t have any inventory to sell, you can still take advantage of some of the favorable interest rates on unsold inventory and negotiate a lower price on an unsold home. It’s important to keep your eye on the prize, though. If you don’t have any inventory to sell, you can still take advantage of some of the favorable interest rates on unsold inventory and negotiate a lower price on an unsold home. It’s important to keep your eye on the prize, though. If you don’t have any inventory to sell, you can still take advantage of some of the favorable interest rates on unsold inventory and negotiate a lower price on an unsold home. It’s important to keep your eye on the prize, though. If you don’t have any inventory to sell, you can still take advantage of some of the favorable interest rates on unsold inventory and negotiate a lower price on an unsold home. It’s important to keep your eye on the prize, though. If you don’t have any inventory to sell, you can still take advantage of some of the favorable interest rates on unsold inventory and negotiate a lower price on an unsold home. It’s important to keep your eye on the prize, though. If you don’t have any inventory to sell, you can still take advantage of some of the favorable interest rates on unsold inventory and negotiate a lower price on an unsold home. It’s important to keep your eye on the prize, though. If you don’t have any inventory to sell, you can still take advantage of some of the favorable interest rates on unsold inventory and negotiate a lower price on an unsold home. It’s important to keep your eye on the prize, though. If you don’t have any inventory to sell, you can still take advantage of some of the favorable interest rates on unsold inventory and negotiate a lower price on an unsold home. It’s important to keep your eye on the prize, though. If you don’t have any inventory to sell, you can still take advantage of some of the favorable interest rates on unsold inventory and negotiate a lower price on an unsold home. It’s important to keep your eye on the prize, though. If you don’t have any inventory to sell, you can still take advantage of some of the favorable interest rates on unsold inventory and negotiate a lower price on an unsold home. It’s important to keep your eye on the prize, though. If you don’t have any inventory to sell, you can still take advantage of some of the favorable interest rates on unsold inventory and negotiate a lower price on an unsold home. It’s important to keep your eye on the prize, though. If you don’t have any inventory to sell, you can still take advantage of some of the favorable interest rates on unsold inventory and negotiate a lower price on an unsold home. It’s important to keep your eye on the prize, though. If you don’t have any inventory to sell, you can still take advantage of some of the favorable interest rates on unsold inventory and negotiate a lower price on an unsold home.
Jan 23, 2023 | Financial Reports
Last week’s economic reporting included readings from the National Association of Home Builders on U.S. housing markets, and Commerce Department data on housing starts and building permits issued. The National Association of Realtors® reported sales of previously owned homes, and weekly readings on mortgage rates and jobless claims were also released.
NAHB: Homebuilder Sentiment Rises in December
The National Association of Home Builders reported increased homebuilder confidence in U.S. housing market conditions in December; this was the first time in 12 months that homebuilder confidence rose. Builder confidence in current housing market conditions rose by four points; builder confidence in home sales conditions over the next six months increased by two points. Builder confidence in prospective buyer traffic in new housing developments rose by three points.
Jerry Konter, a Georgia home builder and chairman of NAHB, said: “It appears that the low point for building sent in this cycle was registered in December, even as many builders continue to use a variety of incentives including price reductions to bolster sales. The rise in builder sentiment also means that cycle lows for permits and starts are likely near, and a rebound for homebuilding could be underway later in 2023.”
Robert Dietz, the NAHB’s chief economist, predicted that single-family home building will increase as mortgage rates are expected to trend lower and boost housing affordability. Mr. Dietz said, “Improved housing affordability will increase housing demand as the nation grapples with a structural housing deficit of 1.5 million units.”
Mortgage Rates, New Jobless Claims Fall
Freddie Mac reported lower mortgage rates last week as the average rate for 30-year fixed-rate mortgages fell by 18 basis points to 6.15 percent. Rates for 15-year fixed-rate mortgages averaged 5.28 percent and were 24 basis points lower on average.
First-time jobless claims fell to 190,000 claims filed as compared to expectations of 215,000 initial claims filed and the previous week’s reading of 205,000 new jobless claims filed. Ongoing jobless claims increased to 1.65 million claims filed compared to the previous week’s reading of 1.63 million continuing jobless claims.
What’s Ahead
This week’s scheduled economic reporting includes readings on new and pending home sales, consumer sentiment, and predictions on inflation. Weekly readings on mortgage rates and jobless claims will also be published.
Jan 23, 2023 | Financial Reports
Last week’s economic reporting included readings from the National Association of Home Builders on U.S. housing markets, and Commerce Department data on housing starts and building permits issued. The National Association of Realtors® reported sales of previously owned homes, and weekly readings on mortgage rates and jobless claims were also released.
NAHB: Homebuilder Sentiment Rises in December
The National Association of Home Builders reported increased homebuilder confidence in U.S. housing market conditions in December; this was the first time in 12 months that homebuilder confidence rose. Builder confidence in current housing market conditions rose by four points; builder confidence in home sales conditions over the next six months increased by two points. Builder confidence in prospective buyer traffic in new housing developments rose by three points.
Jerry Konter, a Georgia home builder and chairman of NAHB, said: “It appears that the low point for building sent in this cycle was registered in December, even as many builders continue to use a variety of incentives including price reductions to bolster sales. The rise in builder sentiment also means that cycle lows for permits and starts are likely near, and a rebound for homebuilding could be underway later in 2023.”
Robert Dietz, the NAHB’s chief economist, predicted that single-family home building will increase as mortgage rates are expected to trend lower and boost housing affordability. Mr. Dietz said, “Improved housing affordability will increase housing demand as the nation grapples with a structural housing deficit of 1.5 million units.”
Mortgage Rates, New Jobless Claims Fall
Freddie Mac reported lower mortgage rates last week as the average rate for 30-year fixed-rate mortgages fell by 18 basis points to 6.15 percent. Rates for 15-year fixed-rate mortgages averaged 5.28 percent and were 24 basis points lower on average.
First-time jobless claims fell to 190,000 claims filed as compared to expectations of 215,000 initial claims filed and the previous week’s reading of 205,000 new jobless claims filed. Ongoing jobless claims increased to 1.65 million claims filed compared to the previous week’s reading of 1.63 million continuing jobless claims.
What’s Ahead
This week’s scheduled economic reporting includes readings on new and pending home sales, consumer sentiment, and predictions on inflation. Weekly readings on mortgage rates and jobless claims will also be published.
