A M. Appraisals Blog

2020 Mid-Year National/International Economic Update
August 6th, 2020 6:01 AM
This year, 2020, has truly been unique in many ways. As we reached the halfway point, here are a few NATIONAL/INTERNATIONAL stats that have affected the current economic state of affairs and led to a hot real estate market:

Key Economic Data and Events in July 2020
  • The last FOMC Meeting concluded with the Fed continuing its current Monetary Policy
  • 2nd Quarter GDP showed the Economy Contracted 32.9%
  • The Economy added 4.8 million jobs, and the Unemployment Rate fell to 11.1%
  • The 10 Year Treasury Security yield is bouncing around 0.6%
Housing Market Data Released in July 2020
  • Existing Home Sales (closed deals in June) rose 20.7% to an annual rate of 4,720,000 homes, down 11.3% in the last 12 months. The median price for all types of homes is $295,300 - up 3.5% from a year ago. The median Single Family Home price is $298,600 and $262,700 for a condo. First Time Buyers were 35%, Investors 9%, Cash Buyers 16%. Homes were on the market for an average of 24 days, and 62% were on the market for less than a month. Currently, 1,570,000 homes are for sale, down 18.2% from 1,920,000 units a year ago.
  • New Home Sales (signed contracts in June) rose 13.8% to a seasonally adjusted annual rate of 776,000 homes - up 6.9% YoY. The median New Home price is $329,200, and the average is $384,700. There are 307,000 New Homes for sale, which is a 4.7 month supply.
  • Pending Home Sales Index (signed contracts in June) rose 16.6%, up 6.3% YoY.  
  • Building Permits (issued in June) rose 2.1% to a seasonally adjusted annual rate of 1,241,000 - down 2.5% YoY. Single-Family Permits rose 11.8% to an annual pace of 834,000 units, down 1.1% YoY.    
  • Housing Starts (excavation began in June) rose 17.3% to an annual adjusted rate of 1,186,000 units - down 4.9% YoY. Single-Family Starts rose 17.2% to 831,000 units - down 3.9% in the last 12 months. 
  • Housing Completions (issued in June) rose 4.3 to an annual adjusted rate of 1,250,000 - up 5.1% YoY. Single Family Completions rose 9.6% to 910,000 units - up 4.0% in the last 12 months.
  • S&P/Case-Shiller 20 City Composite Home Price Index rose 0.04% in May, up 3.7% YoY. 
  • FHFA Home Price Index fell 0.3% in May, now up 4.9% YoY. 
Labor Market Economic Data Released in July 2020
  • The Economy added 4,800,000 Jobs in June
  • The Unemployment Rate fell to 11.1% in June from 13.3% the previous month                                                                                   
  • The Labor Force Participation Rate rose to 61.5% in June from 60.8% the previous month The Average Hourly Wage fell 1.2% in June, up 5.0% YoY
Inflation Economic Data Released in July 2020
  • CPI rose 0.6%, up 0.6% in the last 12 months
  • Core CPI (ex-food & energy) rose 0.2%, up 1.2% in the last 12 months
  • PPI fell 0.2%, down 0.8% in the last 12 months
  • Core PPI (ex-food & energy) fell 0.3%, down 0.1% in the last 12 months
GDP Economic Data Released in July 2020
  • Retail Sales rose 7.5% during June, now up 1.1% in the last 12 months
  • Consumer Confidence Index fell to 92.6 from 98.1 the prior month         
  • Consumer Sentiment Index (U of M ) fell to 72.5 from 78.1 the previous month 
Energy, International, and Things You May Have Missed   
Oil Prices are up slightly as they bounce around $42 a barrel. WTI Crude (West Texas Intermediate) is trading around $41/barrel, and Brent Crude is trading around $44/barrel.
  • The US Dollar weakened against the Euro, now about $1.18 vs the Euro.
  • The USMCA (US Mexico Canada Agreement) became effective July 1.
  • Eurozone GDP dropped 12.1% in the 2nd quarter. Germany's GDP was down 10.1%, France down 13.8%, Italy down 12.4%, Spain down 18.5%.
  • China's GDP grew 3.2% YoY in the 2nd quarter - if you can trust their data.
 
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The material provided is for informational and educational purposes only and should not be construed as investment, legal, financial, or mortgage advice. The information is gathered from sources believed to be credible. The source for most of the information, Act Appraisal Inc and Mortgage Elements Inc, do not guarantee or warrant its completeness or accuracy and there is no guarantee it is without errors.

Posted in:General
Posted by Ashley Martin on August 6th, 2020 6:01 AMPost a Comment

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