September 27, 2024
- The Realtor.com® economics team video update gives you the relevant economic and real estate information you need to know each week every Friday to navigate the housing market as a homebuyer, home seller, or industry professional.
- For the week ending Friday September 27, Chief Economist Danielle Hale recaps how several Fed speakers this week reinforced the message that the economy is on solid footing and expected to achieve its 2% inflation target soon, which is why the Fed throttled back its policy rate. Underscoring this message, the Fed’s preferred inflation gauge, the PCE index, showed that inflation ran at a 2.2% pace over the last year–very close to target.
- Mortgage rates dipped to a new 2-year low this week registering roughly 6.1%. Forward-looking indicators for home sales show that consumers are responding to lower rates. New home sales slipped from July but were nearly 10% higher than one year ago and importantly Joel Berner noted, the share of homes sold in under $400,000 price tiers rose, pulling the median new home price down. Pending Home Sales were similarly mixed, up for the month but still down for the year.
- Although home prices per Case Shiller continued to rise for the 3-month period ending in July, last week’s data from Realtor.com show that prices continue to soften. Fortunately for shoppers, new listings also ticked up.
- And as we near the best time to buy, which is next week, Ralph McLaughlin took a look at how home shoppers hoping to score a discount can parse listing descriptions for clues. The phrase “priced to sell” or similar wording was associated with a discount of 8.5% or $38,000 off the median priced home.
- As we’re in a buyer sweet spot some may be thinking about investment property. Hannah Jones found that the top markets for investors are clustered in the Northeast and Midwest, but she identified at least one market in every region worth considering.
- While rents are trending down annually, economist Jiayi Xu found that rents in NYC continue to increase, driven by upticks for smaller-sized units.
- You’ll find all the details including full reports and our housing data for download at realtor.com/research. You can also follow us on X (formerly twitter) for real time updates. And now instagram @realtordotcomecon for graphics.
VIDEO TRANSCRIPT:
- I’m Danielle Hale, Chief Economist at Realtor.com®. And here’s what you need to know about the economy and housing market this week!
- We heard from several Fed speakers who reinforced the message that the economy is on solid footing and inflation is moving toward target which is why the Fed throttled back its policy rate.
- Underscoring this message, the Fed’s preferred inflation gauge, the PCE index, showed that inflation ran at a 2.2% pace over the last year–very close to the 2% target. While the Fed doesn’t target core inflation–the measure excluding food & energy prices–it’s worth noting that this gauge ticked up as falling energy prices played an important role in reducing overall inflation.
- Notably, rent makes up a smaller portion of the Fed’s preferred gauge, helping usher in the lower reading. In a recent Realtor.com report, Economist Jiayi Xu found that although national rents are fairly steady, rents in New York City continue to increase driven by upticks for smaller-sized units.
- Although consumer confidence weakened in September, market expectations around the outlook were little changed. In fact, mortgage rates moved just 1 basis point this week, but eked out a new 2-year low registering roughly 6.1%.
- Forward looking indicators for home sales show that consumers are responding to lower rates. New home sales slipped from July but were nearly 10% higher than one year ago and importantly Joel Berner noted, the share of homes sold in under $400,000 price tiers rose, pulling the median new home price down.
- Pending Home Sales were similarly mixed, up for the month but still down for the year, suggesting an uneven road ahead for home sales.
- Although home prices per Case Shiller continued to rise for the 3-month period ending in July, last week’s data from Realtor.com show that prices continue to soften. Fortunately for shoppers, new listings also ticked up.
- And as we near the best time to buy, which is NEXT WEEK, my colleague Ralph McLaughlin took a look at how home shoppers hoping to score a discount can parse listing descriptions for clues. The phrase “priced to sell” or similar wording was associated with a discount of 8.5% or $38,000 off the median priced home.
- Furthermore, as we’re in a buyer sweet spot some of you or your clients may be thinking about investment property. Hannah Jones found that the top markets for investors are clustered in the Northeast and Midwest, but she identified at least one market in every region worth considering.
- You’ll find all the details including full reports and our housing data for download at realtor.com/research. You can also follow us on X (formerly twitter) for real time updates. And now instagram @realtordotcomecon for graphics.
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