Markets in a Minute, Housing Market News, January 29, 2023

This week’s financial and housing market activity update…”

The Economy

• Surpassing expectations, the economy demonstrated accelerated growth in the final quarter, driven by robust consumer spending, defying earlier predictions of a potential 2023 recession.
• Labor Market Resilience: Despite a 25K increase in initial jobless claims last week, reaching 214K—the highest in a month—the upward trajectory signals a fundamentally robust labor market, instilling confidence among industry professionals.
• Durable Goods Orders: Contrary to economist forecasts of a slight increase, orders for durable goods remained unchanged in December. This data highlights the intricacies of market dynamics and challenges the conventional predictions. 

Housing Market Updates

• Amidst higher mortgage rates and limited supply challenges, the housing market showcased resilience. New home sales experienced an impressive 8% surge in December, contributing to a 4% overall increase in 2023.
• Affordability Boost: December witnessed improved affordability, with the MBA reporting mortgage applicants seeking loans with payments 3.8% lower than those in November. This shift bodes well for potential homebuyers and industry stakeholders alike.
• Market Variances: While the housing market overall displayed strength, Redfin’s data indicates an 8% year-over-year decline in pending home sales for December. Weather-related factors, including winter conditions, played a role in this notable 4-month dip.

Navigating the Future
For Industry professionals, including real estate agents, developers, builders, and improvement contractors, it is crucial to remain attuned to these market nuances. The dynamic interplay of economic indicators and housing trends underscores the need for agility and strategic planning in the ever-evolving landscape.