Economic research

Small Business Index – Realtor.com Economic Research

November 12, 2021

VIDEO TRANSCRIPTION:

  • I am Danielle Hale, Chief Economist for Realtor.com® and here’s what you need to know.
  • With COVID cases stable across the country and increasing in some areas, states continue to experiment. In Colorado, for example, the governor declared all adults eligible for booster shots. Meanwhile, it is estimated that nearly one million children aged 5 to 11 received a vaccine in their first week of eligibility.
  • Economic news this week has been mixed. As unemployment insurance claims hit a new low in the new pandemic era, small business optimism has plummeted on owners’ worries about the economic outlook. Nonetheless, small businesses continue to hire, and a record 44% net percentage said they had recently increased their compensation.
  • A higher salary will help workers better cope with rising costs. This week’s consumer price inflation data confirmed what you’ve probably noticed: the prices of the goods and services you buy are rising rapidly. The biggest price increases were for energy, housing, food and vehicles.
  • Despite inflation, mortgage rates surprised this week by dip below 3 percent. While the drop is good news for those who can lock in a rate immediately, I don’t expect it to last.
  • Reflecting business concern about the outlook, a recent survey shows nearly 2 in 3 consumers said the economy is on the wrong track. Nonetheless, improved consumer attitudes toward buying and selling a home have pushed up the homebuyer sentiment index.
  • during this time Realtor.com October Housing Data showed that prices remained near the summer high as inventories continue to fall. Homes in October stayed on the market longer than in June, but with only 45 days on the market, homes sold faster during the slower season this fall than during the peak season of the previous year. This highlights how fast the housing market has become.
  • We also got our first glimpse of November in our weekly data, and while many trends are similar, one point really stood out. We saw new listings move into positive territory for the first time in 8 weeks. If it continues, it would be good news for buyers and sellers alike.
  • And our recent survey of home sellers gives reason to believe that this jump will not be unique. The share of respondents saying they would like to sell their home within 12 months has more than doubled from this spring.
  • Find more details and our accommodation data to download at realtor.com/research. And follow us on Twitter for real-time updates.

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August 13, 2021

  • To keep up with the rapid changes COVID-19 is causing in the economy and housing market, the economics team at realtor.com® provides a weekly blog and video update on relevant real estate and economic information you need to know. to navigate the housing market. in these difficult times.
  • This week, senior economist George Ratiu looks back on the latest economic and housing indicators, starting with job vacancies hitting a new record high, for the fourth straight month. He also discusses the wage pressures facing small businesses, as well as the continued decline in unemployment insurance claims. He continues with the latest news on consumer prices, which posted strong growth in July.
  • George is covering Realtor.com’s July housing data (composed by economic research analyst Sr Sabrina Speianu) which shows signs of positive change for homebuyers as more affordable homes come up for sale. He continues with weekly housing figures from Realtor.com (released by Chief Economist Danielle Hale), which indicate a notable slowdown in price appreciation to single-digit territory over the past two weeks, alongside increase in new registrations.
  • George also discusses this week’s mortgage rates, which jumped on improving economic conditions. And it concludes with affordability, the central theme of the new 2021 release of Realtor.com’s Hottest ZIP Codes (authored by Chief Economist Danielle Hale and Economic Research Analyst Nicolas Bedo), which highlights that buyers are looking for spacious homes and outdoor features in suburban areas with strong job markets for millennials.
  • For more real-time updates, follow the realtor.com® economics team on Twitter: @rdc_economics.

VIDEO TRANSCRIPTION:

  • I’m George Ratiu, Senior Economist at Realtor.com®.
  • Summer heat has enveloped large parts of the country, as many families prepare to say goodbye to the holidays and transition into a new school year, as workers and businesses navigate the new hybrid work landscape in middle of a burgeoning COVID Delta variant.
  • The economy and real estate markets continue to normalize, with clear signs of improvement.
  • The number of job vacancies in June hit a new record high, the fourth consecutive month hitting a record high. As the labor market tightens and companies pay more to attract workers, more and more employees feel comfortable leaving their jobs to seek a better one.
  • Increased labor mobility, coupled with rising prices, is pushing many small businesses to raise wages. Nearly a third of small business owners plan to increase their compensation over the next 3 months, based on the NFIB index.
  • Improvements in working conditions also surfaced in this week’s unemployment claims figures, which showed the third weekly decline. More and more Americans are finding gainful employment as business activity expands.
  • Prices rose again in July with the consumer price index up 5.4% from a year ago for the second month in a row, to a 20-year high. However, core inflation remained below expectations as food and used car prices saw slower growth. For most Americans, the pressure on monthly budgets is mounting.
  • On the real estate front, the markets are moving more towards normalization. Housing data from Realtor.com in July showed signs of positive change for homebuyers as more affordable homes come up for sale. Compared to last year, an increasing number of smaller homes are coming onto the market, resulting in a noticeable moderation in price appreciation.
  • This trend was reflected in Realtor.com’s more recent weekly housing figures, which showed that price gains have slowed to single-digit territory over the past two weeks, alongside rising prices. new registrations.
  • Buyers are finally starting to see more affordable options, which is timely, with mortgage rates jumping 10 basis points this week.
  • Speaking of affordability, that’s the central theme of the new 2021 release of Realtor.com’s Hottest Zip Codes. With prices at record highs and remote work here to stay, buyers are squarely looking for spacious homes and outdoor features in suburban areas with strong millennial labor markets. The majority of postcodes on our list are priced significantly below the national median.
  • Stay safe and stay cool as we sail through mid-August and keep up to date with the latest information from Realtor.com
  • Find your market trends and download the data at realtor.com/research or follow us on Twitter for real-time updates.

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