September 10, 2024 | Driving It Home with ABoR's Housing Economist

Today’s podcast episode centers around key economic data, the housing market, and predictions for interest rate changes. ABoR & Unlock MLS CMO Kelea Youngblood and Unlock MLS Economist Dr. Clare Knapp begin by discussing the release of recent jobs data and upcoming inflation data, which will guide Federal Reserve decisions. Dr. Knapp anticipates a 25-basis-point cut in interest rates but notes that if inflation data is lower than expected, a 50-basis-point cut is possible. The episode highlights the significance of these economic indicators for monetary policy and housing market trends. Next, they delve into the August housing market statistics. The MLS rule changes, which took effect in mid-August, haven't yet had a significant impact, according to Dr. Knapp. However, ongoing affordability challenges continue to drive the market, with year-over-year declines in home sales and a dip in the close-to-list price ratio. While mortgage rates have decreased, sellers remain firm on their pricing, creating a disconnect with buyers' purchasing power. The supply of available homes has increased, but sellers’ reluctance to adjust prices is hampering market activity. Looking ahead, Dr. Knapp predicts the market could see more alignment between buyers and sellers by the spring of 2025, particularly if interest rates continue to drop and sellers adjust their expectations. The episode wraps up with a plug for the upcoming Central Texas Housing Summit and Global Congress in October, where more insights into these trends will be shared. Links Mentioned 2024 North American Global Congress + Central Texas Housing Summit https://www.abor.com/event-type/global-congress August 2024 Central Texas Market Report (Coming this week!) https://www.abor.com/marketstatistics   Download an episode transcript: https://www.abor.com/content/uploads/2024/09/DIH-9-10-24.pdf Listen On: Apple: https://podcasts.apple.com/us/podcast/driving-it-home-with-abors-housing-economist/id1714289732 YouTube: https://www.youtube.com/playlist?list=PLzH_caxJ3VPq5iExWilqZOahnREgSFgqC  Connect with us on socials: https://www.abor.com/socials Connect with Dr. Clare Knapp on LinkedIn: https://www.linkedin.com/in/clare-losey  Have feedback? Email us at [email protected].