US HOUSE PRICES ARE LIKELY TO DROP AS RATES RISE, CAPITAL ECONOMICS SAYS
US house prices are likely to fall as mortgage rates exceeding 6% crimp affordability for the average buyer, according to Capital Economics. Property prices could contract an annual 5% by the middle of next year, Matthew Pointon, senior property economist, said in a research note Monday.
‘SO FAR, NOBODY’S PANICKING’: CRE EVALUATING STRATEGIES AS STOCKS DIVE WITH REST OF MARKET
Real Estate equities are now suffering as fallout from the threat of inflation and higher interest rates nudge the U.S. economy closer to the brink of recession.
U.S. RETAIL SALES DECLINED IN MAY AS INFLATION STINGS CONSUMERS
Americans’ retail spending declined in May, as consumers felt the pinch from inflation, higher gasoline prices and rising interest rates. Retail sales—a measure of spending at stores, online and in restaurants—fell a seasonally adjusted 0.3% in May from the previous month, the Commerce Department said Wednesday.
CONSUMERS PULL BACK ON SPENDING IN MAY
U.S. retail spending stalled in May as consumers dealt with continuing inflation for food and other essentials and high prices at the pump. Retail sales in May were flat with April but up 6.7% year-over-year, according to the National Retail Federation, which excludes automobile dealers, gasoline stations and restaurants from its metrics.
THE LUMBER ROLLER COASTER TAKES ANOTHER PRICE DIVE
Look at six months of lumber futures and, if you depend on the material in your business, things look downright promising. At $555.9 per thousand board feet, it’s almost like a beneficent construction deity is blessing you with fairer weather and the ability to buy a 2×4 without needing a mortgage.
THE ASSET CLASSES POISED TO THRIVE AS CRE ENTERS RECESSION ‘DANGER ZONE’: MOODY’S
Income drivers for U.S. commercial and residential real estate were as strong as predicted in the first quarter of 2022, with multifamily and industrial doing particularly well — but the remainder of this year and 2023 aren’t so certain.