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Inflation, Interest Rates, and Housing Challenges: What You Need to Know This Week!
Inflation Trends
The Bureau of Labor Statistics (BLS) reported that inflation remained steady at 3.3% in May, slightly down from previous months. This stability is crucial for economic confidence. However, housing costs play a significant role in keeping inflation elevated.
Interest Rates Unchanged
Following a Federal Reserve meeting, Chair Jerome Powell announced that interest rates would remain unchanged. The Fed’s economic projections suggest only one rate cut in 2024. Good inflation readings influenced this decision.
Housing Supply Challenges
Despite stable inflation, housing supply remains a concern. Higher interest rates have increased construction costs and limited loans for new housing. Chair Powell acknowledges the shortage and calls for non-monetary policy solutions.
Sources:
- https://eyeonhousing.org/2024/06/fed-holds-rates-constant-sees-one-cut-for-2024/
- https://www.axios.com/2024/06/12/may-cpi-inflation-data-fed
- https://freddiemac.gcs-web.com/news-releases/news-release-details/mortgage-rates-continue-move-down-0?_gl=1*1yynmfg*_gcl_au*MTcyNTYzMTQuMTcxNTQ0NjcyMA..&_ga=2.205586906.832273563.1718561916-250820470.1706976253
Job Growth And Equity Gains June 12th 2024
Job Growth And Equity Gains
In May 2024, the U.S. economy added 272,000 jobs, exceeding expectations. However, the unemployment rate increased to 4%, marking the first rise since January 2022. The Federal Reserve is keeping interest rates at around 7%, despite concerns about inflation. Meanwhile, homeowners are enjoying record-high equity gains. Home equity jumped by 9.6% in Q1 2024, adding $1.5 trillion in equity.
About Bryan:
Bryan Selser, the Marketing Director at Coldwell Banker Advantage in Raleigh, NC, has extensive real estate experience. He started his journey nine years ago after graduating from North Carolina State University with a BA in Communication Media and a minor in Business Administration. As a licensed REALTOR®, Bryan is committed to serving the local real estate industry and community.
Bryan also holds the 2024 Vice Chair position for the RRAR Communications & PR Committee and is an active member of the Raleigh Regional Association of REALTORS Board of Directors. He is passionate about supporting new real estate agents. He previously chaired the RRAR YPN Committee and is the Vice-Chair for the NC REALTORS YPN Committee. In 2021, he earned the prestigious Coldwell Banker 30 Under 30 Award.
Labor Market Impact On Housing
The labor market impact on housing: Consumers now feel more confident about the housing market. But here’s the twist: as home prices soar, how does this make sense? The Case-Shiller Index, which tracks U.S. home values, just hit a record high—an impressive 6.5% annual gain. In addition, this is the sixth record in a year. Not only that, but pending home sales dropped by 7.7% in April. Despite all of that, consumer confidence still improved. The Conference Board’s confidence index rose from 97.5 to 102. Why? The strong labor market reassures people that jobs won’t vanish soon. However, if that changes, the market could shift.
The labor market impact on housing plays an important role. If people continue to feel secure, it will keep boosting confidence. But it’s a delicate balance. As we navigate these market changes, economic indicators matter. Stay tuned!
About Bryan:
Bryan Selser, the Marketing Director at Coldwell Banker Advantage in Raleigh, NC, brings extensive real estate experience. His journey began nine years ago after graduating from North Carolina State University with a BA in Communication Media and a minor in Business Administration. As a licensed REALTOR®, Bryan is dedicated to serving the local real estate industry and community.
Beyond marketing, Bryan holds the 2024 Vice Chair position for the RRAR Communications & PR Committee and actively participates in the Raleigh Regional Association of REALTORS Board Of Directors. His passion lies in supporting new real estate agents, and he previously chaired the RRAR YPN Committee and is also the Vice-Chair for the NC REALTORS YPN committee. Notably, in 2021, he earned the prestigious Coldwell Banker 30 Under 30 Award.
Topics In This Blog:
Labor Market Impact On Housing, Real Estate Market Update, Real Estate
Builder Confidence & Housing Supply
Builder Confidence & Housing Supply: According to the National Association of Home Builders, builder confidence dropped this month, which is the first decline since November of 2023, and that is really due to expanding regulatory burdens but also the fact that mortgage rates have been averaging above 7% for the past several weeks now. If there is one thing we need right now to help with inflated home prices, its supply. An increase in supply is the best way to get home prices more affordable across our country and so we want to see builder confidence go up not down. We want to see increases in supply.
To put this in perspective in April this year there were 674,000 single family homes under construction which was the highest count since November 2023 so that is a good trend and Mortgage rates have seen a decrease for the second consecutive week so we will need to continue to watch these factors as we go through the summer. Its great to have mortgage rates decrease to increase confidence in the market but only if the supply is there. If the supply stays low, lower interest rates will only continue to cause prices to go up and supply to go down.
That’s this weeks update, will see you all next week!
About Bryan:
Bryan Selser, the Marketing Director at Coldwell Banker Advantage in Raleigh, NC, brings extensive real estate experience.
Topics:
Builder Confidence & Housing Supply, Real Estate Market Update, Real Estate, Housing Data, Market Report
Interest Rates and Home Sales 2024
Interest Rates and Home Sales 2024: Last week, REALTORS from all over the country met in Washington, D.C., for the National Association of REALTORS legislative meetings. Chief Economist Lawrence Yun shared important predictions. By the end of the year, average interest rates will settle at 6.5%. Home sales are expected to go up by 9% to 4.46 million in 2024, from 4.09 million in 2023.
There is a lot of good news. Nearly half of all mortgaged homes in the U.S. had a lot of equity in the first quarter of 2024. These loans were much less than the market value of the homes, which led to record equity levels.
More people want mortgages now, driven by lower interest rates. The average 30-year conventional rate dropped to 7.18%. FHA loan rates also fell to 6.92%. However, The Conference Board Consumer Confidence Index went down for the third month in a row in April. But, consumers are still hopeful about the present, which helps balance future worries.
Stay tuned for more real estate updates.
About Bryan:
Bryan Selser is the Marketing Director at Coldwell Banker Advantage in Raleigh, NC. He started his journey nine years ago after graduating from North Carolina State University and earned a BA in Communication Media and a minor in Business Administration. As a licensed REALTOR®, Bryan is dedicated to helping the local real estate industry and community.
Topics:
Interest Rates and Home Sales 2024, Real Estate Market, Market Data, Housing Data, Real Estate, Real Estate Market Report, Housing In 2024
Spotlight On Success: Conversation With Real Estate Team Leader Sharon Webb Of The Webb Realty Group
In this Spotlight On Success interview, Director Of Marketing Bryan Selser, sits down with top-producing team leader Sharon Webb, to discuss how Sharon and her team continue to find success in the industry. Topics included keeping up with trends, managing a busy schedule, building a successful team, and more!
Luxury Home Tour: 7+ Acre Home In Pittsboro, NC 27312
Discover the epitome of luxury rural living with this meticulously maintained four-bedroom, custom brick home, nestled on just over 7 acres of beautifully landscaped, gated grounds. Step into a world of sophistication as you enter the grand foyer where soaring ceilings and natural light welcome you. The main level invites you to unwind in the spacious primary suite, complete with a spa-like ensuite bath and dual custom-designed walk-in closets. An ensuite guest bedroom and formal living and dining areas ensure effortless entertaining. This stunning home boasts a spacious, dedicated home office perfect for the professional who works remotely. Airy windows bathe the area in natural light and offer views of hummingbirds and butterflies to keep you connected to nature while you work. A large custom maple built-in offers ample room for your computer equipment and important documents while providing plenty of space for a large desk and seating. The heart of the home is the gourmet kitchen, designed for culinary excellence. High-end appliances, custom cabinetry, and quartz countertops will inspire your inner chef. Dual staircases lead to the second floor where versatility awaits. Discover a second ensuite guest bedroom, flex room, large bonus room, and third guest bedroom with adjoining bath. Thoughtful features ensure your comfort and peace of mind, including a whole-house generator, central vacuum, security system, and irrigation system. Ample storage is provided by a walk-in attic and a full walkout basement, complete with shelving, plumbed for future expansion, and boasting an oversized one-car garage. The main level offers a three-car garage and additional outdoor parking space. Step outside and discover a haven for outdoor enthusiasts. The climate-controlled brick building offers generous storage for all of your toys and 50 amp power service to keep your RV or boat ready for adventures. Horses are welcome on this expansive property, offering the freedom to embrace country living at its finest.
Listing Agent: Brenda Goff
https://www.cbadvantage.com/…/55-valley…/107-1504691
Checking Out The Carolina Exotic Car Club, Raleigh NC
Recently, we hosted our Coldwell Banker Advantage top real estate agent event at the Carolina Exotic Car Club in Raleigh, North Carolina. It was an awesome experience!
The Carolina Exotic Car Club is a private, members-only club that caters to car enthusiasts. It’s a unique facility that combines all aspects of service and amenities for exotic and collector car owners1. The club offers secure climate-controlled storage, on-site maintenance and repair, detail, private event venue rentals, catering, enclosed transport, and much more.
During the event, I had the chance to meet the team from ECD Auto Design. They are creators of restored luxury vehicles that combine classic English beauty with modern performance2. Their facility is over 30,000 square feet and growing with over 50 full-time employees building the best award-winning vehicles in the USA2. They specialize in restoring Land Rover Defenders, Land Rover Series IIA, the Range Rover Classic, and the Jaguar E-Type.
The event at the Carolina Exotic Car Club was a lot of fun. It was a fantastic opportunity to network, see some amazing cars, and learn more about the world of exotic cars. If you’re a car enthusiast in the Raleigh area, I highly recommend checking out the Carolina Exotic Car Club. Check out my video below to take the tour.
Spotlight on Success: A Conversation with Top Producing Agent Jennifer Coleman
I recently had the opportunity to sit down with Jennifer Coleman, a top-producing real estate agent out of Cary, North Carolina, with Coldwell Banker Advantage. Jennifer has been excelling in her business and beyond being a top-producing real estate agent, she is also the host of a national TV show called American Dream TV. She was most recently featured in Triangle Real Producers magazine. In addition, Jennifer has been recognized as a Coldwell Banker Award winner again this year and has been featured in Triangle Real Producers magazine. It’s been an exciting year for Jennifer, and she feels honored to have been selected for all these different roles and to be able to represent the Coldwell Banker Advantage brand, herself, and her clients.
When I asked her about the key to success in real estate, Jennifer emphasized the importance of relationship building. She has always been a relationship-oriented person and believes in being authentic and providing value to her clients. She approaches her work with the goal of providing value to her clients, which she believes leads to growth in her business.
Her story provides valuable insights and tips for success in any business. Check out the full interview in the video below.
Building An Intentional Business, Defining Your Values, & Work-Life Balance With Molly McKinley.
Recently, I had the opportunity to sit down with Molly McKinley, the author of the book “The Intentional Business: A Path to Purpose and Prosperity”. We delved into the concepts of her book and learned how to apply them to our day-to-day lives. In her book, Molly talks about the concept of being purposeful and how you can connect the dots between purpose and your marketing to create an intentional business. This concept can apply to any business in any industry. When you build a business based on knowing yourself, you start to build a business based on purpose. When you marry that with what the world needs, you start to have a business that is generally prosperous and purposeful.
Being in real estate can be a demanding job. We wear a lot of different hats and get put into a lot of different roles. It can be hard to find work-life balance and manage our hectic schedules. But with the concepts from Molly’s book, we can learn to be more purposeful in our actions and create a more balanced life.
My conversation with Molly McKinley was enlightening and inspiring. Her book “The Intentional Business: A Path to Purpose and Prosperity” provides valuable insights for anyone looking to create a more purposeful and prosperous business. Check out the full interview in the video below:
