Last Week in Review: Once again, home prices experienced big gains.
Forecast for the Week: The Fed will be focusing on inflation, manufacturing and more.
“Seems there ain’t no end in sight.” Garth Brooks. Home prices jumped again in July, rising 1.1 percent from June. How high will they go?
Home prices around the country, including distressed sales, have risen 6 percent from July 2015 through July 2016, according to data analytics firm CoreLogic. Low home loan rates will likely fuel home purchases in the year ahead. Limited inventory, however, could further drive home prices up because the supply is not meeting demand.
Meanwhile, job growth slowed in August, the Bureau of Labor Statistics reported. Non-farm Payrolls grew by 151,000, below the 180,000 expected. In addition, average hourly earnings rose by a disappointing 0.1 percent versus the 0.2 percent expected.
And while the Unemployment Rate remained at 4.9 percent, the Labor Force Participation Rate (LFPR) held steady at 62.8 percent, which is near multi-decade lows. The LFPR measures the number of people who are either employed or actively looking for work, and it should be moving higher in a recovery.
The good news is home loan rates are still hovering in historically low territory. For people in the market for a home right now, good rates can help offset home price increases.
Please contact me with any questions you might have about purchasing your next home, condo or investment property. Tim Brodowski, Coldwell Banker, 858-354-2354. BRE #01224576.