Greenway's Markets in a Minute I What could reduce the housing inventory shortage?
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The consumer price index was unchanged in October, missing forecasts that called for a modest gain. Low inflation helps keep mortgage rates low. |
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Stocks rallied to new highs early this week on positive COVID-19 vaccine news but fell later due to concerns about possible lockdowns to curb a resurgence in cases. |
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Jobless claims fell by the most in 5 weeks to a 7-month low. The drop signals a continued recovery in the labor market despite COVID-19's recent surge. |
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NAR is exploring ways to reduce tax burdens on home sellers and spur housing development. Changes could help reduce the historic housing inventory shortage. |
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Mortgage demand from homebuyers dropped to its lowest level in 6 months last week. Purchase applications fell 3% but were still 16% higher than a year ago. |
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Reduced turnover in the construction labor market is a positive sign for home building. Construction sector layoffs have been low since May and continue to decline. |
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Greenway's Markets in a Minute I Housing Isn't Likely to Cool this Winter
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Manufacturing activity accelerated more than expected in October, with new orders jumping to their highest level in 17 years. A pandemic related spending shift is driving the surge. |
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According to Senate Majority Leader Mitch McConnell, passing a new stimulus package before the end of the year remains a top priority when the Senate reconvenes. |
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The Fed left policy rates unchanged once again at this week's meeting and pledged to continue implementing policy to help the economy recover. |
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Coronavirus-related forbearance rates dropped to a 7-month low in October. Data shows that most homeowners who take forbearance actually continue making payments. |
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Construction spending was up 0.3% in September over August and was 1.5% higher year over year. Residential construction was strong, with single family home projects up 5.7%. |
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This winter's real estate market is shaping up to be unlike any before. NAR's Lawrence Yun predicts the season "will be one of the best winter sales years ever." |
Greenway's Markets in a Minute I Sellers Have Interesting Requests
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The economy bounced back in the 3rd quarter with another record surge, recording gains of 33.1% and reversing much of the collapse from coronavirus lockdowns. |
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New orders for key U.S. made capital goods jumped 1.9% in September, exceeding expectations of a 0.5% increase and pointing to an improving economy. |
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Jobless claims fell once again last week, even lower than expected to 751,000. The labor market remains on a path of gradual improvement, although still far from pre-pandemic health. |
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According to CoreLogic, home prices continue to increase at a modest rate. Nationally, home prices were up 5.7% annually in August and up 4.8% from the previous month. |
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Pending home sales unexpectedly declined in September for the first time in 5 months, a sign elevated asking prices and lean supply are tempering the housing boom. |
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Sellers are requesting odd contingencies these days. One asked buyers to maintain the wardrobe of a plastic skeleton at the front door, and another included the cat with the home. |
Greenway's Markets in a Minute I Find out what restaurants say about the recovery
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Talks continue for another pandemic stimulus package, although it is now questionable if a deal could be pushed into law before the November elections. |
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Pandemic aside, 6,500 new restaurants opened last month. That's only 100 fewer new restaurant openings nationwide compared to a year earlier, a good sign for the recovery. |
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Jobless claims declined last week, falling for the third time in four weeks. Continuing claims fell to 8.37 million; however, more people were on extended benefits. |
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Single-family homebuilding surged in September, cementing the housing market's status as the star of the economic recovery. Starts were up 8.5% over last month. |
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Homebuilder sentiment set another record high in October, despite challenges of shortages in labor, lots, and lumber, as buyer demand remains strong. |
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Existing home sales jumped 9.5% in September, but sales could be even more robust if more homes were available. Inventory fell 19.2% annually, a 2.7-month supply. |
Greenway's Markets in a Minute I Find Out What's Helping Rates
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Consumer prices rose 0.2% in September, mainly due to a sharp increase in used car prices. Inflation still remains below the Fed's target of 2.0%, which helps rates remain low. |
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Producer prices also rose in September. The increase was more than expected amid a surge in costs for traveler accommodation services. It was the 1st year-on-year gain since March. |
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Jobless claims unexpectedly increased last week, coming in at 898,000. The increase could heighten fears that the pandemic is inflicting lasting damage to the labor market. |
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Record high lumber prices are driving up new home prices. Recent spikes in lumber have added more than $16,000 to the typical cost of a new single-family home. |
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The pandemic is reversing a long-standing preference by renters for urban locations. Instead, rentals are surging in suburban markets, where renters with no commute can afford larger spaces. |
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Rising home prices translate into higher down payment requirements, making purchases harder on first-time buyers. The median home price is now $350,000, up from $312,000 a year ago. |
