Real Estate News in Brief: Rate Cuts, Inventory Surge, Jobs Data, and Home Prices

Rate Cuts Are on the Horizon

Fed Chairman Jerome Powell recently hinted at potential rate cuts in his testimony to Congress. Additionally, the June CPI inflation report came in lower than expected, contributing to a decline in 30-year mortgage rates, which are now moving below 7%. This is promising news for home buyers and sellers in the Greater Boston area.

Rising Inventory of Homes for Sale

For the week ending June 29, nationwide inventory of homes for sale increased by 38% year-over-year. New listings saw an 11% YoY rise, providing more options for home buyers. This trend is particularly relevant for those looking to buy in Boston's competitive real estate market.

Mixed Signals from Jobs Data

JOLTs Survey

• • Job Openings: Rose to 8.1 million in May.
  • Month-over-Month Change: Largely due to a downward revision of April's data (-140,000 jobs).
  • Hires and Quits Rate: Remained unchanged.

ADP Employment Report

• • Private Jobs Growth: Slowed for the third straight month to +150,000 in June, slightly below expectations.
  • Industry Highlight: 40% of job gains came from the leisure & hospitality sector.

BLS Jobs Report

• • Establishment Survey: US added 206,000 jobs in June, slightly above expectations. However, May and April job gains were revised down by a combined 111,000.
  • Household Survey: Unemployment rate rose to 4.1%, up from 3.6% a year ago, a potential recession indicator.

Home Price Growth Slows but Remains Robust

According to CoreLogic, home prices rose 0.6% month-over-month in May, down from +1.1% in April. Despite the slowdown, the data giant predicts a 3% price growth over the next 12 months. This is a critical trend for both buyers and sellers in the Greater Boston area, as it indicates a still-strong housing market.

Jerome Powell's Testimony to Congress

While maintaining a balanced outlook, Fed Chairman Jerome Powell sounded a bit more dovish in his recent testimony: "Reducing policy restraint too late or too little could unduly weaken economic activity and employment." This statement suggests a cautious approach to rate adjustments, which can impact mortgage rates and, subsequently, the housing market.

Insights from Digital Realty

As a real estate broker at Digital Realty, staying informed about these economic indicators and trends is essential for guiding clients in the Greater Boston area.

Whether you're buying, selling, or investing, understanding these shifts can help you make more informed decisions and capitalize on market opportunities.

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