Signs point to slow-down
We’ve been hearing for some time now that the market is slowing down but haven’t really seen it in Mississippi just yet. In fact, our local real estate market seems to be holding steady. In certain price points in the Jackson metro market, single-family houses are under contract within hours or just a few days of going on the market.
Things may be about to change. According to experts, the US economy appears to be slowing. Freight shipments have dropped over the last four consecutive months. The Joint Center for Housing Studies of Harvard University’s Leading Indicator of Remodeling Activity, or LIRA, index predicts homeowner remodeling spends will fall from the current 7% to 2.6% in the first quarter of 2020. Fed Chairman Jerome Powell has warned the economy is slowing faster than expected. National Association of Home Builders Chief Economist Robert Dietz forecast calls for slowing growth, given declining home price appreciation and existing home sales volume, combined with rising construction costs.
Jessica Guerin, an editor at HousingWire, quoted BuildFax COO Jonathan Kanarek stating “The downward trend in housing activity has led to increased focus on the sector. In March, the Fed signaled no additional rate increases in 2019, which could boost investment in the housing market.”
I guess we’ll just have to wait to see how things go.