In this weeks housing market update, from realtor.com, Manager of Economic Research George Ratiu talks about signs that the economy and real estate markets are moving toward a new normal. George talks about the fourth consecutive monthly advance in industrial production, and the solid increase in retail spending, even with rising consumer prices.
He highlights that the economy remains on a stable foundation, however moderating growth looms on the horizon, as the Conference Board’s Leading Economic Index spotlighted in April. Concerned companies are moving to contain costs, and some are cutting jobs, as evidenced by the increase in unemployment insurance claims. On the real estate front, George talks about the slowdown in new construction and declining homebuilder sentiment. He also highlights that existing home sales declined for three consecutive months as higher mortgage rates cooled demand.