Good morning, readers.
We’re taking a look at a couple of economic trends that might be slowly changing course with the new year. In real estate, there are signs that residential buyers may be returning to the market as mortgage rates stabilize. Meanwhile, some of the tightness in the job market could be unwinding nationally, leaving local economics as a major factor in your business’ options for talent.
Read on to learn more about those and other top news and trends in the world of U.S business.
For one economic trend that may be turning around, The Business Journals’ Ashley Fahey is taking a look at the housing market, where for months buyers have been shying away amid rising mortgage rates and high-cost housing.
But the new year has brought with it signs that buyers may slowly be making their way back to the market. Redfin Corp. found while pending home sales fell 26% year over year during the four weeks ending Jan. 22, that was the smallest drop in more than three months, and that metric had begun rising on a month-over-month basis since December.
Separately, home tours and requests for service for Redfin remain down 23% and 27% respectively from a year prior, but both are an improvement from a November trough that was down 40%.
Pending home sales increased in December after six consecutive months of decline, according to the National Association of Realtors.
“This recent low point in home sales activity is likely over,” Lawrence Yun, NAR’s chief economist, said in a statement accompanying the December data release. “Mortgage rates are the dominant factor driving home sales, and recent declines in rates are clearly helping to stabilize the market.”