Written by Robert Talas, Owner of The Talas Report Blog
Hello everyone, Robert Talas here, bringing you the latest updates from the real estate and market industry. This week’s roundup covers some key developments that could have significant implications for investors, homeowners, and the overall economic landscape. Let’s dive in!
1. PCE Inflation Sees a Surge in June 2023
The Personal Consumption Expenditures (PCE) inflation, a crucial indicator of price changes for goods and services, witnessed a notable surge in June 2023. This surge indicates that inflationary pressures continue to impact the economy, and it’s essential for investors and consumers to closely monitor these developments.
Takeaway Points:
- PCE inflation experienced a substantial increase in June 2023, reflecting ongoing inflationary pressures in the economy.
- Investors should carefully assess their portfolios and consider diversification strategies to mitigate the impact of rising inflation.
2. Capital Proposal May Drive Banks Away from Mortgages
A recent capital proposal could potentially lead banks to reduce their involvement in the mortgage market. The proposed changes could impose higher capital requirements on banks, making mortgage lending less attractive and potentially limiting access to credit for homebuyers.
Takeaway Points:
- The capital proposal may result in reduced mortgage lending from banks, affecting potential homebuyers’ ability to secure loans.
- Homebuyers should explore alternative lending options, such as credit unions or online lenders, to ensure they can access financing for their real estate purchases.
3. Pending Home Sales Experience First Increase in 3 Months
In a positive sign for the housing market, pending home sales saw a 0.3% increase in June 2023. This marks the first increase in three months and suggests that the real estate market may be regaining some momentum.
Takeaway Points:
- The rise in pending home sales indicates a potential rebound in the housing market, offering hope for both sellers and buyers.
- Prospective home sellers should consider listing their properties now to take advantage of the improving market conditions.
4. NYC Commercial Construction Starts Record a 30% Decline
New York City’s commercial construction sector experienced a significant setback as construction start values plummeted by 30%. This decline raises concerns about the city’s economic recovery and the state of the commercial real estate market.
Takeaway Points:
- The sharp drop in commercial construction starts signals potential challenges in the NYC real estate market, especially for commercial property investors.
- Investors and developers should reassess their strategies and exercise caution before undertaking major commercial projects in the current market climate.
That wraps up this week’s Weekly Round Up. Stay tuned for more updates and insights on the real estate and market industry. As always, it’s crucial to stay informed and make well-informed decisions in these ever-changing times.
References:
- CNBC: PCE inflation surges in June 2023 – https://www.cnbc.com/2023/07/28/pce-inflation-june-2023-.html
- National Mortgage News: Capital proposal may drive banks further out of mortgages – https://www.nationalmortgagenews.com/news/capital-proposal-may-could-drive-banks-further-out-of-mortgages
- HousingWire: Pending home sales rose 0.3% in June, the first increase in 3 months – https://www.housingwire.com/articles/pending-home-sales-rose-0-3-in-june-the-first-increase-in-3-months/?cx_testId=3&cx_testVariant=cx_1&cx_artPos=1&cx_experienceId=EXZNOASUT0V6#cxrecs_s
- The Real Deal: NYC commercial construction start values fall 30% – https://therealdeal.com/new-york/2023/07/27/nyc-commercial-construction-start-values-fall-30/