Our baseline forecast for the American economy next year calls for a mild recession by the second half of the year as the impact of higher interest rates sets in. … READ MORE >
Real estate
When will inflation slow? Pay attention to housing.
We estimate that there is an approximately 18-month lag between changes in housing prices and those in the housing inflation components. … READ MORE >
What’s behind the slowdown in construction hiring?
The October jobs report would seem to represent a peak in the construction industry as builders added only 1,000 jobs. But is more at play? … READ MORE >
U.S. new home sales fell 10.9% in September
The steep rise in mortgage rates has been the number one reason for the fall in demand. As the Federal Reserve increases interest rates to combat inflation, mortgage rates have spiked to a multi-decade high of more than 7%. … READ MORE >
Concerns over Canada’s housing market weigh on real estate investors
The growing uncertainty facing Canada’s housing market was the focus of the 6th Annual Real Estate Canada Forum held on Oct. 6 in Toronto. The closed-door forum brought together real estate investors amid concerns over continued interest rate hikes and the resulting market cool-down. A key takeaway was that Canada’s … … READ MORE >
Electric vehicle infrastructure creates opportunities for real estate
The adoption of electric vehicles has grown tremendously over the past year and a half. The trend will accelerate as consumer demand, which is being fueled by higher gasoline prices, tax incentives, funding from the Inflation Reduction Act, and the increased desire for environmental sustainability, continues to rise. For commercial real estate, the boost in electric vehicle use will create immense opportunities, as EV charging stations become sought after additions to properties ranging from multifamily dwellings to retail centers. … READ MORE >
U.S. housing starts continue to fall amid rate hikes
New housing starts fell by 8.1% in September as the impact of rising mortgage rates worked through the housing market. … READ MORE >
Accounting for climate risks in business decisions
Businesses of all kinds, not just the insurance industry, must account for climate-related physical risks and factor them into strategic decisions. … READ MORE >
Pending home sales fall to their lowest level since April 2020
Pending home sales in the United States fell by 2% in August, the third straight monthly decline amid a steep rise in mortgage rates. … READ MORE >
Canada housing starts fall amid rising rates
Canada’s housing starts fell to 267,443 in August, a 3% drop from July, continuing the decline in the housing sector because of rising interest rates. … READ MORE >