| "THE DEVIL IS IN THE DETAILS..." Or so the famous saying goes. And when it comes to really understanding the various reports and events unfolding in the economy, it's important to take a look at the details - not just the headlines. Here's what you need to know.
On the inflation front, the Producer Price Index, which measures wholesale inflation, unexpectedly fell due to a drop in energy prices. While that seems like good news on the surface, keep in mind that next month's number could climb higher again, as oil and natural gas have both been on a tear higher lately. In housing news, Housing Starts and Building Permits both came in a bit below expectations, but this may be a sign that builders are exercising some caution - particularly in the face of the $8,000 tax credit for first time homebuyers that is presently set to expire on November 30th. Existing Home Sales came in better than expected - and a whopping 45% of those homes were sold to first time homebuyers - rushing to move in on that credit. Recent studies have shown that many who qualify for this tax credit aren't even aware of it...so please let me know if you or someone you know needs more information - the clock is ticking! Additionally, the level of existing homes inventory shrunk to a 7.8 month supply, down from a recent high of 10.1 months in April. |
Samson Properties - Bowie, MD
I don't make promises.I deliver results.SOLD HOMES
Additionally, the level of existing homes inventory shrunk to a 7.8 month supply, down from a recent high of 10.1 months in April-That's great news. People need to buy more houses so that we can reduce the amount of inventory that is currently on the market. Great post.
Oct 26, 2009 11:12 AM
Keller Williams Realty The Marketplace - Las Vegas, NV
Henderson, Las Vegas and Summerlin Real Estate
Your note on the Producer Price Index reminds me of another saying - "one month does not make a trend." So many times the media just reports whether it is up or down, but you are wise to question where the index is likely to move in the months ahead.
Oct 26, 2009 11:21 AM
Sea to Sky Premier Properties (Salt Spring) - Salt Spring Island, BC
Caring expertise...knowledge for you!
Thanks for your post. It seems in a transition moment that "everything" occurs -- inflationary pressures, shrinking inventory in lower priced properties, spilling of inventory in the luxury market segment...who has that crystal ball???
Oct 26, 2009 11:53 AM
Rice Prprty Mgmnt & Rlty, LLC, South Holland, IL - Lansing, IL
SFR, SRES, CNC
Hello there! Lanre featured this in his post, so i had to run to read it! That's GOOD news about new first time home buyers.... more will be added if the credit is extended!
Nov 02, 2009 12:14 PM
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor
I am glad that Lanre featured your post. Good information with a refreshing outlook. TI look forward to more posts from your team. Thanks.
Nov 04, 2009 04:34 AM
Rainmaker
58,151
58,151
Dionelle(Don) Davis
Don Davis Realty Group-COMPASS
Comments(5)