This Week In Real Estate

National news and local views for the week ending Friday, May 17, 2024

Welcome to this week's real estate update! We're seeing some promising trends: inflation is cooling, and 30-year mortgage rates have dipped below 7%, which could boost home sales. Despite a slow market last year, growing demand and lower rates signal a potential rebound.

National Real Estate News

Inflation is a bit cooler

That makes three in a row: a lower-than-expected BLS jobs number, flat retail sales in April, and now "core" CPI (Consumer Price Index = inflation for you and me) easing from +3.8% YoY in March to 3.6% YoY in April. None of these screamed recession, but they did at least point to a slowing economy and a loosening job market - exactly what the Fed needs to see more of before cutting rates. [Source: BLS, BEA]

Back below 7%

As you'd expect, the bond market LOVED the flat retail sales and slower inflation figures. And when bond prices rise, bond yields fall (inverse relationship). And when bond yields fall, mortgage rates tend to fall, too. Average 30-year mortgage rates dropped back below 7%, which (if they can hold) should boost transaction volumes for existing and new home sales in the coming months. [Source: Mortgage News Daily]

An inevitable snapback

4 million existing homes sold in 2023. That's 21% below its pre-pandemic average (5.1 million) and about the same level as in 2008 (15 years ago). That alone suggests a significant rebound in sales is imminent. But the US population has grown by 40 million over the same period! On a per-population basis, existing home sales were incredibly (and unsustainably) low last year! [Source: NAR]

Local Market Trends

As of Friday, May 17, 2024

North Aurora saw a slight price increase, steady listings, and a longer market duration. Aurora and Naperville maintained stable prices but experienced a slight drop in market days. Geneva faced a minor price dip and shorter market times. Overall, the market shows mixed trends but remains active.

Do you have any questions about these articles or your local market? Get in touch!

630-865-9635

[email protected]