One theme running through this week’s data is the shortage of homes for sale. Builders can’t find workers or empty lots. Homeowners are reluctant to put their houses on the market. As a result, inventory has been retreating for 14 straight months, leaving buyers in a bind.
“Tepid sales growth is to be expected given the sorry state of inventory,” Redfin chief economist Nela Richardson said. “And with rates at their lowest in almost two years, each new wave of listings leads to a new crop of buyers and fiercer competition.”
The economy is always difficult to measure, and winter data on housing seems to be even more erratic since the recession, said Scott Brown, chief economist at Raymond James & Associates.
In the bigger picture, residential real estate is plodding along. And this week’s economic data makes it even less likely the Federal Reserve will raise rates at their meeting later this month.
“The figures are consistent with moderate growth – not strong, but not horrible – leaving the Fed in no hurry to take the punch bowl away,” Brown said.
