Friday, June 21, 2024 National and local views
National Real Estate News
Disinflationary
Last week, CPI for May came in lower than expected (headline inflation was FLAT month-over-month). This week, retail sales for May grew only 0.1% MoM and the April figure was revised down from flat (previously) to -0.2% MoM. It's pretty clear that the economy (and price growth) is slowing, but the Fed still considers US economic growth as "strong" and inflation as "too high." [Source: Commerce Department]
Steady at 7%
The good news is that we seem to have left 7.5% behind. The bad news is that average 30-yr mortgage rates hovering near 7% is still having a negative impact on both existing (previously owned) and new home sales. At least there are more properties for buyers to choose from, with national inventory up +35% year-over-year. [Source: Realtor.com, Mortgage News Daily]
Builder confidence slips
After a big (6 point) drop in May, the National Association of Homebuilders' confidence index dropped an additional 2 points in June to 43. Anything less than 50 is considered bearish/contractionary. No prizes awarded for guessing why: 'persistently high' mortgage rates, which are keeping many would-be buyers on the sidelines. [Source: NAHB]
Local Market Trends
| Area | Median Price | Active Listings | New Listings - 5 days | Median Days on Market |
|---|---|---|---|---|
| Gilbert, AZ |
$694,950
0%
|
528
0%
|
48 |
39
0%
|
| Chandler, AZ |
$600,000
0%
|
369
-0.2%
|
36 |
38
-0.1%
|
| Queen Creek, AZ |
$699,000
0%
|
593
0.7%
|
31 |
56
0%
|
| Scottsdale, AZ |
$1,035,000
-0.2%
|
1881
-0.1%
|
82 |
62
-0.1%
|
/) from May. to Jun. 2024.
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