Dallas housing market continues to be resilient
According to National Association of Realtors Even against the backdrop of a national housing slowdown, the South is expected to remain a booming region for home sales in 2023. “The demand for housing continues to outpace supply,” says NAR Chief Economist Lawrence Yun.
The Top 5 Markets identified by NAR are
- Atlanta-Sandy Springs-Marietta, Ga.
- Raleigh, N.C.
- Dallas-Fort Worth-Arlington, Texas
- Fayetteville-Springdale-Rogers, Ark.-Mo.
- Greenville-Anderson-Mauldin, S.C.
Builder Permit and Housing Market at Glance
- Builder Permit and Housing Market at Glance
- Over all housing decreased by 4.5% to a seasonally adjusted annual rate of 1.31 million units
- According to NAHB
- Housing construction weakened in January as ongoing affordability conditions fueled by high mortgage rates and building material costs challenged the market,” said Alicia Huey, chairman of the National Association of Home Builders (NAHB)
Mortgage rates increase by 2 basis points to 6.32% for 30 years and 5.51% for 15 years according to Freddiemac
Inflation appears to be sticky. Although inflation shows a downward trend. CPI numbers released on Feb 14th, 2023 were higher than expected According to the U.S. Bureau of Labor Statistics CPI rose 0.5 percent MOM in January on a seasonally adjusted basis, after increasing 0.1 percent in December 2022. Shelter was the highest contributor, accounting for half of the increase. The food index rose by 0.5% followed by energy at 2.0%.
Y/Y, core CPI climbed 5.6%, vs. +5.5% expected and +5.7% prior and representing the smallest 12-month increase since December 2021.
Where are interest Rates Heading
Loretta Mester, president of the Cleveland Fed, believes the economy is on a strong path, and that it may be appropriate for the Fed to raise interest rates sooner rather than later.
Cleveland Fed President Loretta Mester told, “I didn’t see a change in my outlook, that the funds’ rate would have to go above 5%,”. In Addition to Ms. Mester. St. Louis Fed President James Bullard also felt a 50-basis point hike was necessary to tame inflation.
Contributor: Capital Markets – Ishan Pandey | Real Estate: Balgovind Pandey