Driving It Home with ABoR's Housing Economist | November 21, 2023
Channel: Austin Board of REALTORS®
Date: 2023-11-21

In this episode of Driving at Home, Dr. Clare Losey and Emily Chenevert discuss recent economic indicators, particularly consumer spending and costs, as measures of inflation. The Consumer Price Index (CPI) for October was unchanged on a month-over-month basis and showed a 3.2% rise year-over-year, which the market viewed positively, leading to a rally in stocks. Market participants, using tools like the CME FedWatch, now largely anticipate that the Federal Reserve will not raise interest rates in December. Producer Price Index (PPI) figures were also mentioned as being essential because they affect consumer prices if business input costs change.

Dr. Losey explains that both CPI and PPI figures remained relatively flat, with the cost of single-family residential construction goods and services showing a slight deceleration year-over-year. The cost of construction goods and services has significantly increased compared to pre-pandemic levels, emphasizing the sustained high cost of new home construction. Also discussed were labor costs in construction, highlighting shortages in specialized trades and the importance of advocacy and training to support these high-paying professions.

The episode concludes with market expectations, anticipating steadier market conditions leading into the holiday season with no significant news expected to cause fluctuations. They also report on market data, noting a strong finish in closed sales and an anticipated decline due to the holiday season.

*Links mentioned in this episode:* 
https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html
https://www.abor.com/advocacy

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Download the Audio Transcript + Episode Summary: https://www.abor.com/content/uploads/2023/11/DIH-11-21-23.pdf

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