Let’s first touch on the subject that matters to us most. Data this morning shows home values across the country declined 0.1% last month and the year-over-year values rose 1.0%. They are still forecasting of 4.3% increase between now and December 2026. Pending home sales are now at the highest levels in three years, taking the power squarely away from the seller and onto the buyer. With home values down a smidge and interest rates near 12 month lows, now is an amazing time for clients to buy that next home
Apartment rents dropped 0.8% last month, which is the fifth month of straight declines, reducing rents paid 1.3% from a year ago. Rents have been declining for the last 30 months. Disinflationary=good.
And lastly, the ISM manufacturing index was released yesterday at 47.9, which is the lowest reading in the last 12 months, reinforcing the labor market data and perhaps more importantly, proving that the robots aren’t taking over people’s jobs. It’s just that the economy is slowing down. I’m honestly not sure which is better… or worse.
