A homebuyer must now earn $79,252 per year to afford the typical US starter home, just ~$500 below the all-time record.

This has DOUBLED in just 4 years and was up 4.4% year-over-year, according to Redfin.

Meanwhile, the monthly payment for a typical starter home in July reached $1,981.

Currently, ~70% of starter homes are affordable to the median-earning household, near the all-time low and down from ~73% in 2023.

In half of the 50 most populous metros, the local median income is not enough to afford a starter home.

Affordability crisis is an understatement.

#HousingMarket #HousingMarket

🟧 US Homebuyer Sentiment Declines Sharply

Consumer Confidence Index: Dropped to 4.1 points in August, the lowest in 11 years.
🟧 Second weakest reading since the post-2008 Housing Bubble burst.

Home Purchasing Plans: The 6-month average declined to a 12-year low.
🟧 Mortgage demand reached the lowest level since 1995.

Home Prices: Continue to rise, making buying a home a luxury.

#RealEstate #HousingMarket #Economy

Macro Markets Show Weakness, Putting Pressure on the US Economy to Slow Down🤔
More of the same in macro markets yesterday, with prices holding up despite more data points suggesting a more pronounced slowdown in the US economy in the near future. US initial claims rebounded 13k to 231k last week, the highest levels since August. Similarly, continuing claims also rose for the 8th straight week, to the highest levels since Nov 2021 as signs of a labour market cooldown continues.Other data points were similarly weak with US industrial production falling by -0.6% in October, the weakest print in almost a year, with drops in capacity utilization, manufacturing production, as well as vehicle sales. The NAHB housing index also fell -6 points to 34 in November, marking a 4th straight decline, and also the lowest print since last November.
#MacroMarkets #USEconomy #InitialClaims #IndustrialProduction #HousingMarket

Equity Markets Surge with Rate Trends: Homebuilders Lead🤝
Unsurprisingly, equity risk proxies followed the move in rates, where the US homebuilder sub index saw the biggest gains all year, jumping well over 5% on the day, where expectations of falling funding rates and a still historically tight housing market are expected to provide positive PNL tailwinds for homebuilders.The rest of the equity complex joined in on the fun, with the S&P 500 seeing a 2% rally with a 93% up-day, with every single sub-sector in the green, even with the embattled healthcare and energy sub-sectors. Furthermore, with the peak in terminal funds appearing to be in sight, and worries about unsustainable treasury supply kicked into next year (thanks Secretary Yellen!), the conventional 60/40 portfolio has seen a massive 5% return over the past-month with the synchronized rally across cross-asset classes.
#EquityRally #HousingMarket #S&P500Rally #HealthcareEnergySectors #60/40PortfolioReturns

🚨🚨 READ CAREFULLY 🚨🚨

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🛑U.S. Economic Data Highlights This Week:🛑

NY Fed Manufacturing Index (Mon.): Key insights into manufacturing activity in the New York region.

Retail Sales (Tues.): Crucial data on consumer spending trends and economic health.

Building Permits (Wed.): Indicators of future construction activity and housing market strength.

Housing Starts (Wed.): Data on new residential construction projects, reflecting economic momentum.

Industrial Production (Wed.): Measures output from factories, mines, and utilities, showing industrial sector performance.

Jobless Claims (Thurs.): Weekly updates on the labor market and unemployment trends.

Philly Fed Manufacturing Index (Thurs.): Regional manufacturing activity data from the Philadelphia area.

Stay tuned for detailed updates and analysis!

#USEconomy #MarketTrends #HousingMarket #LaborMarket #IndustrialProduction