March 26, 2024 | Driving It Home with ABoR's Housing Economist

In this episode of Driving at Home, Dr. Clare Losey and Danielle Hammett discuss leasing data, federal interest rates, and trends in pending sales. Dr. Losey starts the podcast by noting an uptick in pending leases, especially in the most affordable rent range corresponding to homes under $300,000. She emphasizes that the rental market continues to meet the homeownership needs that are unmet in the market, particularly in Austin. With the majority of pending leases being in the more affordable bracket, this trend reflects the reality that homeownership is becoming less accessible for first-time buyers due to high costs. The Federal Reserve's decision not to change interest rates signals a status quo that the market anticipated, suggesting possible rate cuts later in the year. Dr. Losey advises caution, interpreting data revisions to mean there may only be two rate cuts this year. Stability in mortgage rates provides some predictability in the market, which could lead to a stronger spring home buying season than the previous year. They continue by discussing how pending sales are an indicator of future market activity, with a notable 21% increase in the first half of March year-over-year. This surge, especially in areas like Caldwell and Hays County, suggests an active spring season. They conclude with insights on first-time homebuyers, highlighting demographic trends and the ongoing challenge of affordability, and encourage real estate professionals to leverage this data in their client interactions and strategies. Links Mentioned: ABoR Research/Buy Vs. Rent Index https://www.abor.com/research Apple: https://podcasts.apple.com/us/podcast/driving-it-home-with-abors-housing-economist/id1714289732  YouTube: https://www.youtube.com/playlist?list=PLzH_caxJ3VPq5iExWilqZOahnREgSFgqC   Download the Audio Transcript + Episode Summary: https://www.abor.com/content/uploads/2024/03/DIH-3-26-24.pdf Connect with us on socials: https://www.abor.com/socials  Connect with Dr. Clare Losey on LinkedIn: https://www.linkedin.com/in/clare-losey   Have feedback? Email us at [email protected].