Mortgage Musings: Money, Loans & Levity
June 26, 2023
U.S. Leading the Way in Economic Indicators…Towards Recession
The Leading Economic Indicators report shows a consistent contraction for the fourteenth month in a row. It’s like a never-ending game of economic limbo – how low can we go? Apparently, the US is determined to set a record! But hey, at least we have Janet Yellen to entertain us with her optimism. Resilient labor market and falling inflation? Sure, Janet, let’s laugh in the face of logic!
REALTORS® Confidence Index – Heating Up the Housing Competition
Let’s take a break from economic contractions and dive into the exciting world of real estate. The REALTORS Confidence Index (RCI) reveals that housing competition is heating up. It’s like a spicy salsa dance-off, with buyers swirling around properties like there’s no tomorrow. With 3.3 offers per sale, things are getting spicy.
Used Car Prices – Driving Inflation Insanity
Ah, used car prices, the silent influencers of inflation. After a brief flattening out in May, they are starting to move a little lower in June. This news is music to our ears! The recent CPI reports were getting a bit carried away with their 4.4% gains but fear not! With the Car Gurus index pointing downward, we can all breathe a sigh of relief. Farewell, inflationary pressure! Your time in the spotlight is coming to an end. Just make sure to buckle up, as the ride might still be a little bumpy!
Sales Rise Against the Odds
Just when you thought everything was going downhill, existing home sales in May surprised us all. They rose by a modest 0.2%, showcasing the resilience of the housing market. It’s like watching a tightrope walker wobble but manage to stay on the wire, defying the expectations of those waiting below.
While sales might be chugging along, the culprit behind their sluggish pace is none other than the elusive inventory. With levels sitting at approximately half of what they were in 2019, finding a home feels like participating in an intense game of hide-and-seek.
The Price Tag Tango
The never-ending waltz of numbers and market trends. The national median home price showing a modest increase of 2.6% from the previous month. Homes on the market have the blink-and-you-miss-it feeling. If you’re in the market for a home, you better have your running shoes on. The lack of sales isn’t due to a lack of demand; it’s simply a result of the scarce inventory. With most of the homes selling in less than 30 days, it’s clear that if you price your home right, it’ll be snatched up faster than a doughnut in my kitchen on a Saturday morning!
Buyers and Investors – A Shifting Cast
Let’s not forget the players in this real estate world. First-time homebuyers, cash buyers, and investors each have their roles to play. First-time homebuyers accounted for 28% of sales, showcasing their determination to get a slice of the housing pie. Cash buyers, with their stack of bills, made up 25% of sales, while investors danced their way into 15% of transactions. It’s a cast of characters that changes and evolves with each act, adding their own quirks to the show.
In the grand performance of economics, inflation may take center stage, but the world of existing home sales offers its own entertaining subplot. From the whims of inventory to the ever-changing dance of prices, it’s a market that keeps us on our toes. So, as we navigate through these economic twists and turns, let’s remember that every failure is just the beginning of the manifestation.