April 30, 2021
- To keep up with the rapid changes COVID-19 is causing in the economy and housing market, the realtor.com® economics team provides a weekly blog and video update on the relevant real estate and economic information you need to know to navigate the housing market in these challenging times.
- This week, Senior Economist George Ratiu talks about new signs of growth in the economy and real estate markets. He talks about the first quarter GDP advance and the rebound in durable goods orders. He also discusses the welcome decline in jobless claims, and the accompanying jump in consumer confidence.
- George talks about the Federal Reserve’s continued monetary support and the impact on mortgage rates. He also presents the latest market trends from realtor.com (authored by Sabrina Speianu), including results from a recent survey of homeowners indicating a noticeable potential increase in the number of homes for sale.
- George also mentions the newest market spotlight, a partnership between realtor.com and The Wall Street Journal, looking at emerging housing markets, cities where solid local economies complement diverse neighborhoods, entrepreneurship, high quality of life and relatively affordable real estate (published by Chief Economist Danielle Hale).
- For more real-time updates, follow the realtor.com economics team on twitter: @rdc_economics.
- I’m George Ratiu, Senior Economist with realtor.com. We are moving into the warm days of May and anticipating a much brighter summer, as signs of growth and renewal in the economy grow clearer.
- An important sign this week, the initial estimate of first-quarter GDP showed the economy advanced at a strong pace. The economic rebound mirrored the reopening of service, travel and hospitality businesses, plus government fiscal stimulus payments.
- Bolstering the economic advance, orders for durable goods rose in March. Manufacturing companies expect much stronger business activity this year.
- The week’s initial jobless claims offered more good news, with further declines. The 4-week average reached the lowest level since March 14, 2020, just before the quarantines, pointing to growth in employment in the months ahead.
- These positive numbers underscore real advances in the economic framework, which translate into rising optimism. With the health crisis diminishing visibly and a return to normal within sight, the consumer confidence index soared to a 14-month high in April.
- Against this backdrop, the Federal Reserve left its short-term rate unchanged this week, and pledged to continue supporting the recovery through asset purchases.
- Real estate markets have outpaced the economic recovery over the past year, and continue to do so this spring. Contract signings for existing homes reversed two months of drops, with a March rebound.
- Recent market data from realtor.com show that activity remained heated in April, with…
Read More: sellers – Realtor.com Economic Research