Above is a CNBC market update for Residential real estate.
The highlights (or lowlights I suppose):
Pending Home sales down 5.3% from May to June.
Homebuilder sentiment stays low at a '34' (50 being a neutral figure).
Our take:
Nothing surprising here if you read our blog routinely. The data moving forward is going to be extremely important in guiding future outlook. Does inventory continue to increase? Does the Fed finally start to make rate cuts to help buyers and free up those 'stuck' in low-rate loans? Does the war in Iran continue putting a strain on energy prices globally?
For years, I've tried to brutally honest on this blog whether right or wrong. I continue to believe this is the start of a long challenging stretch for the US economy and specifically the real estate market. Inventory will be the single leading most important indicator over the next 12-24 months. Even if rates were to increase, increasing inventory will dictate the supply/ demand equation and truly dictate where the market goes from here.
Our Firm
Weitz Commercial
Scott@Weitzcommercial.com
T: 206.306.4034.
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