In each Economic Update, the Research staff analyzes recently released economic indicators and addresses what these indicators mean for REALTORS® and their clients. Today’s update discusses personal income data.
In each Economic Update, the Research staff analyzes recently released economic indicators and addresses what these indicators mean for REALTORS® and their clients. Today’s update discusses GDP growth.
In each Economic Update, the Research staff analyzes recently released economic indicators and addresses what these indicators mean for REALTORS® and their clients. Today’s update discusses mortgage purchase applications and durable goods orders.
By now most are aware of the rising rent phenomenon. Our Realtor® survey indicated only a sliver of the market will see falling rents, with a vast majority of areas experiencing positive though not higher than 5 percent rent growth. According to the ‘rent index’ in the consumer price index as measured by government statisticians, rents are rising by 2.5 percent.
Fannie Mae and Freddie Mac: the mere mention of them arouses passionate anger in many people. Rightly so. These two entities, which had taxpayer guarantees, ran their businesses as if they were privately owned. Fannie and Freddie made huge bets on the housing market. If it had been their money and their loss, then there would be no problem. But their mistakes took taxpayers down as well.
Natural gas prices took a deep dive from six months ago. Last week, the price was slightly under $2 per unit. Increased ‘fracking’ has brought an abundance of new natural gas to the market in addition to bringing mining jobs to Pennsylvania, West Virginia and North Dakota. During this time last year and over the hot summer, the price was $4 to $4.50. Assuming the gas prices will not rise, because there is no imminent plan for a slowdown in fracking, the energy cost at home and in commercial buildings could be sliced in half even with the air conditioners running, provided your energy company utilizes natural gas.
For REALTORS® who get asked about energy costs of a dwelling from renters and from homebuyers, they should be mindful that last year’s energy bill may not be a good reflection of the likely cost this year.
Existing home sales (single-family plus condos), which measure actual closings, decreased 2.6 percent in March to a seasonally adjusted annual rate of 4.48 million units pace. Even with the decrease, the first quarter average of 4.57 million is the strongest first quarter in 5 years.
Compared to one year ago, existing home sales were higher by 5.2 percent. This represents nine straight months of year-over-year gains.
The national median existing home sales price in March was $163,800, which is an increase of 2.5 percent from one year ago. Part of the reason for the price lift is due to a greater number of higher-priced homes getting transacted and a slightly lower number of distressed property sales.
Inventories at the end of March decreased slightly to 2.37 million homes available for sale, corresponding to 6.3 months supply of inventory. The inventory count is 22% lower from one year ago and is in essence at a 6-year low point. A significant inventory shortage is developing in south Florida, Phoenix, Anaheim, and Seattle.
In each Economic Update, the Research staff analyzes recently released economic indicators and addresses what these indicators mean for REALTORS® and their clients. Today’s update discusses mortgage purchase applications.
In each Economic Update, the Research staff analyzes recently released economic indicators and addresses what these indicators mean for REALTORS® and their clients. Today’s update discusses inflation and the producer price index.
Rentals at College Towns
Many colleges and universities are already reporting record high applications and enrollments at their campuses. Unless a school is purposely trying to downsize (going for quality rather than quantity) the simple statistics of an ever-increasing number of people high school age (15-to-19 years old) assures a steady, rising stream of potential college students in the near future. The conversion rate from high school to college enrollment is no doubt rising, not because of better scholastic achievements but because of social pressure to attend college and from easier access to student loans and grants.
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