According to economists for Realtor.com, a real estate listing site owned by News Corp., the run-on home prices is almost over. Realtor.com is forecasting that over the next 12-months the median existing home sales prices will rise 2.9%. That would be a substantial slowing, as U.S. home prices year-over-year in September were up 19.5%.
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Canada’s Industrial Products Price Index Up 0.8% Month-Over-Month and 18.3% Year-Over-Year in November
Statistics Canada (StatsCan) today (12-14-21) released its Industrial Products Price Index (IPPI) for November 2021. According to the “flash estimate,” the IPPI increased 0.8% month-over-month in November. Year-over-year the IPPI was up 18.3%. Softwood lumber rose 5.3% in November, after an increase of 13.3% in October. Year over year, prices for softwood lumber were up 21.8%.
Producer Price Index for Final Demand Increases 0.8% in November
The Bureau of Labor Statistics (BLS) reported today (12-14-21) that the Producer Price Index (PPI) for final demand, seasonally adjusted, increased 0.8% in November. Final demand prices moved 0.6% higher in each of the 3 prior months. On an unadjusted basis, the final demand index rose 9.6% for the 12 months ended in November — the largest advance since 12-month data were first calculated in November 2010.
NFIB’s Small Business Optimism Index Declines Further in November
The National Federation of Independent Business (NFIB), one of the largest small business associations in the US, reported today (12-14-21) that their NFIB Small Business Optimism Index dropped -0.2 points to a reading of 98.4 in November. Four of the 10 components improved, while 4 declined and 2 remained unchanged. The NFIB Uncertainty Index dropped -4 points to a reading of 63.
Federal Reserve’s “Flow of Funds” Reports Largest Post-Great Recession Quarterly Increase in Q3 2021
According to the latest from the Federal Reserve’s Z.1 Financial Accounts of the United States, i.e., the “Flow of Funds”, the aggregate value of all home mortgages of households and nonprofit organizations in the United States in the Q3 of 2021 registered the largest post-Great Recession numerical quarterly increase. From $11.3 trillion in Q2 of 2021, household liabilities rose by $230 billion to $11.5 trillion.
Mortgage Lending Experiences Second Consecutive Quarterly Decline
ATTOM’s Q3 2021 U.S. Residential Property Mortgage Origination Report reveals that 59 million mortgages secured by residential properties were developed in Q3. Those figures were up 3% from Q3 of 2020, but down -8% from the Q2 of 2021. This amounted to the largest quarterly decline in over a year.
Median Home Prices Hit Record Highs; Active Home Listings Hit Record Lows
Redfin, the Seattle-based, technology-powered real estate company, reported that the median home-sale price in the four-week period ending December 5, 2021 hit a new all-time record high of $360,250 — up 14% year-over-year and up 30% for the same period of time in 2019. At the same time, new listings of homes for sale were down -7% year-over-year but up 11% from 2019.
University of Michigan Preliminary Consumer Sentiment Index Increases for December
The University of Michigan today (Friday 12-10-21) released its preliminary Consumer Sentiment Index (CSI) for December. The CSI increased to a reading of 70.4 in December, up from 67.4 in November. This is a month-over-month increase of 4.5%, but it is down -12.8% year-over-year (80.7 in December 2020). The Current Economic Conditions increased to a reading of 74.6 in December, up from 73.6 in November.
Consumer Price Index Increases 0.8% in November, Rises 6.8% Year-Over-Year
The U.S. Bureau of Labor Statistics (BLS) reported on Friday (12-10-21) that the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.8% in November on a seasonally adjusted basis after rising 0.9% in October. Over the past 12-months, the all-item index has increased 6.8% before seasonal adjustment. The largest 12-month increase since the period ending June 1982.
Canadian Investment in Building Increases 1.6% in October
Statistics Canada (StatsCan) today (12-9-21) reported that investment in building, after five consecutive months of declines, posted an increase of 1.6% to $17.8 billion (CAD) in October. Quebec led the way with a 3.5% increase. On a constant dollar basis (2012=100), investment in building construction increased 1.6% to $12.3 billion. Residential construction investment rose 1.4% to $12.9 billion in October.