For the first time, the U.S Bureau of Economic Analysis released official statistics of real state personal consumption expenditures (Real PCE) by state. According to the report, across the nation Real PCE decreased 3.8% in 2020. Note; Real state PCE is a state’s current-dollar PCE adjusted by the state’s regional price parity and the national PCE price index. Indeed…The chart for 2021 should be interesting when it comes out. Click here to read the full report at the Bureau of Economic Analysis.
Author: Brad Beckett
Brad Beckett
Director of Education & Outreach, National Real Estate Investors Association
Recent data from Redfin shows that in mid-December the median home sale price rose 14% year over year to $359,750, which they say is just shy of its all-time high. In addition, they point that this price point was achieved as the number of homes for sale fell to an all-time low. Indeed… “Homebuyers are being hit particularly hard by this wave of inflation…People who set out to buy a home in 2020 but delayed their plans or lost out in bidding wars may now find themselves priced out of homeownership…” Said Redfin Chief Economist Daryl Fairweather. Click here to…
The U.S. government is reporting that total construction spending in November was at a seasonally adjusted annual rate of $1,625 billion, which is up 0.4% from October’s revised estimate. However, November’s figure is 9.3% higher than one year ago. Residential construction was at a seasonally adjusted annual rate of $796.3 billion in November, which is 0.9% higher than October’s revised estimate. Click here to read the full report at the U.S. Census Bureau.
In a recent article in Forbes, Local Market Monitor’s Ingo Winzer says that in ordinary times real estate investors don’t worry much about where to invest. He says every local market has opportunities, rental properties you can buy, and homes you can develop to produce income. To that end, they reveal their 2022 list for where & how investors can achieve the best returns with the lowest risk in the coming year. “Right now we’re not in ordinary times. The covid pandemic still threatens economic recovery, work and living patterns may be permanently altered, and a surge in home prices…
The Federal Reserve Bank of St. Louis says inflation will remain a wild card in GDP outlook for 2022. In fact, they point out that inflation is on pace to be the highest in more than 30 years. In a recent post, they discuss their GDP economic outlook for 2022 with an eye on inflation. Their key takeaways: During 2021, the U.S. economy rebounded strongly, but the rise in inflation surprised many. Headline and core inflation rates for the personal consumption expenditures price index will likely end 2021 at their highest in 30 years or more. The U.S. is expected…
The National Association of Realtors recently released their “2022 Housing market Hidden Gems” report during their 3rd annual Real Estate Forecast Summit. Among other things, the report says in 2022, the real estate industry should expect slower housing price appreciation, easing inflation and rising interest rates. “The housing sector performed spectacularly in 2021 in many markets, with huge gains achieved in places like Austin, Boise and Naples…Several markets did reasonably well in 2021, but not as strong as the underlying fundamentals suggested. Therefore, in 2022, these ‘hidden gem’ markets have more room for growth.” Said Lawrence Yun,…
The National Association of Realtors is reporting that pending home sales were down 2.2% in November, 2021. The NAR’s Pending Home Sales Index (a forward-looking indicator based on contract signings) dropped to 122.4. The NAR cautions that the countrywide surge of the omicron variant poses a risk to the housing market’s performance, however inventory is a large part of November’s decline. Indeed… “There was less pending home sales action this time around, which I would ascribe to low housing supply, but also to buyers being hesitant about home prices…While I expect neither a price reduction, nor another year of record-pace…
Prognostications & forecasts are all over the place about what will happen in 2022. We can only say that we wish you nothing but happiness, wealth and of course, good health! However, with all that being said, the folks over at Keeping Current Matters looked at the various predictions from real estate experts about what the housing market might have in store for us in 2022. Indeed…. As always, stay safe, stay healthy, have a Happy Friday and have Happy New Year! Hat tip to Keeping Current Matters.
According to the latest Federal Housing Finance Agency’s (FHFA) House Price Index (HPI), U.S. house prices in October were up 1.1% from the previous month. In addition, home prices were up 17.4% from one year ago. The FHFA produces the nation’s only public, freely available house price indexes (HPIs) that measure changes in single-family house prices based on data that cover all 50 states and over 400 American cities and extend back to the mid-1970s. “House price levels continue to rise but the rapid pace is curtailing through October,” said Will Doerner, Ph.D., Supervisory Economist in FHFA’s Division of Research…
The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index reported a 19.1% annual gain for October, 2021, which they say is a record high. Their 10-City Composite annual increase came in at 17.1% and their 20-City Composite posted a 18.4% year-over-year gain. “We have previously suggested that the strength in the U.S. housing market is being driven in part by a change in locational preferences as households react to the COVID pandemic. More data will be required to understand whether this demand surge represents an acceleration of purchases that would have occurred over the next several years, or reflects…
