Many of you are in businesses directly affected by residential home sales. We had anticipated six rate cuts this year, which would have had a direct impact on mortgage rates and, subsequently, home sales. However, the current outlook suggests we might only see one. In most markets, the cost of homes is still on the rise, which might seem discouraging for those of us in any business affected by home sales.
However, there is a positive trend emerging as “homes sold” in all markets are starting to regain momentum. Here are some examples to provide proof:
| MARKET | HOMES SOLD IN MAR | HOMES SOLD IN MAY |
|---|---|---|
| Denver | 855 | 1024 |
| Ft. Lauderdale | 355 | 367 |
| Hudson Valley NY | 201 | 245 |
| Napa Valley | 75 | 96 |
| Portland | 545 | 769 |
| Richmond, VA | 234 | 308 |
| Sacramento | 291 | 386 |
| Santa Barbara | 215 | 219 |
| Santa Fe | 82 | 128 |
| Tacoma | 207 | 253 |
Source: Redfin.com
Retail sales increased 0.1% in May, according to the Commerce Department, which was less than the 0.3% expected. Within the report, sales at furniture and home stores were soft with sales fallilng 1.1%. Capital Economics chief North America economist, Paul Ashworth, noted “Tuesday’s retail sales reading add to the ‘signs that consumers are struggling a little’.”
All the more reason now is the time to “hunt” not “farm”. As Thomas Jefferson always said: “Be audacious!”
Onward & Upward!
