Riding the Economic Wave: Navigating Inflation, Employment, and Real Estate Ups and Downs
July 19, 2023
Welcome aboard the continued wild ride of economic updates! Grab your Cheetos and get ready to laugh and learn your way through the latest news on inflation, jobs, and real estate. We’ll dive into the quirky world of numbers and predictions to see where things are headed. Strap in and enjoy the show!
Inflation and the FED: Hold your horses, folks! The Producer Price Index (PPI) report for June has arrived, and it’s delivering some surprises. Producer inflation increased by a mere 0.1%, which is lower than expected. Apparently, wholesale inflation from last year is nowhere to be found. It seems like the producers are either passing on the savings or trying to squeeze out some extra margin. The Fed must be pleased with these low numbers, but they still have plans to hike rates later this month. Talk about keeping us on our toes!
Shipping and Jobs: Time to check the health of the economy with the Cass Freight shipments index. Uh-oh, it fell by 2% last month. Shipping costs are also down 25% from last year. Looks like lower shipping costs are leading to lower inflation overall. On the jobs front, initial jobless claims fell by 12,000. But hey, don’t celebrate just yet. This report covers the shortened July 4 Holiday week, and history shows us that claims tend to rise in the following week. So, expect another twist in the next report.
National Real Estate: Home sweet home, or should we say, home expensive home? Zillow reports that home values rose by 1.4% in June, following a similar rise in May. Home values have hit their highest level on record. Looks like the housing crash predictions missed the mark. With tight inventory and strong demand, bidding wars are breaking out left and right. Homes are selling above their listing price, leaving buyers in awe and sellers with smiles wider than a picket fence.
Local Real Estate: Hold onto your hats, folks! Rents have taken a sharp decline. Median rent is now at $1995, with a year-over-year rent change of -.57%. But let’s remember, rents are a lagging indicator, not a crystal ball. The market conditions are showing a decline in supply, and there’s hope for improvement in the inflation report for Q3. So, don’t pack your bags just yet, there’s still room to navigate this wild real estate market.
Phew! We’ve survived the gyration of inflation, jobs, and real estate updates. From low producer inflation to shipping woes, and from skyrocketing home prices to fluctuating rents, it’s been a wild journey. Remember, economic reports are like comedians, always trying to surprise us with unexpected twists. So, fasten your seatbelts and stay tuned for the next episode of the economic circus!