MetroIntelligence Economic Update by P. DUFFY
Poll of 1,000 buyers of new homes indicate frustrations, but most would do so again
66% of buyers feel some form of regret about the home-building process — including 26% who wish they had purchased an existing home instead. Despite the challenges associated with new home construction, 64% of respondents would buy a newly built home again. Home buyers’ top regrets about the home-building process include conflict over decision-making (36%), premature maintenance (36%), and overstretched budgets (35%).
Federal Reserve meeting minutes shows more rate hikes ahead to combat inflation
The Committee decided to raise the target range for the federal funds rate to 1/4 to 1/2 percent and anticipated that ongoing increases in the target range would be appropriate. With regard to reducing the size of the Federal Reserve’s balance sheet, all members agreed that they had made substantial progress on arriving at a plan specifying the steps the Committee would take. They expected that, depending on economic and financial conditions, beginning the process of reducing the size of the balance sheet would be appropriate at a coming meeting, possibly as early as at the Committee’s May meeting.
CoreLogic: Look for annual home price gains to slow to 5 percent by February 2023
U.S. home price growth registered a year-over-year increase of 20% in February, another series high and marking 12 months of consecutive double-digit gains. Annual price growth has been recorded every month for the past decade. While prospective buyers outnumber sellers, a record-low number of homes for sale remains the primary culprit for the rapid price gains. The CoreLogic HPI Forecast shows national year-over-year appreciation slowing to 5% by February 2023, as rising interest rates are expected to sideline even more buyers.