SVN® International Corp. Economic Update – Keeping our clients up-to-date about the latest real estate landscape trends.
In the first quarter of 2024, the US economy experienced a modest 1.6% annualized expansion, falling short of the 2.5% forecasted pace, marking the second consecutive quarter of slowed economic output since the first half of 2023. Despite an uptick in price pressures, consumer spending slowed to 2.5%, mainly attributed to decreased goods consumption while services spending accelerated. While non-residential investment eased, residential investment surged significantly and government spending decelerated, with exports slowing sharply and imports soaring, alongside continued contraction in private inventories.
Furthermore, the Multifamily sector observed heightened sales volume amidst tighter debt financing conditions, and some rental markets have seen home prices grow faster than rents, suggesting potential for growth. However, commercial property foreclosures surged, and the PCE price index reported its most significant annual hike in four months, although core prices registered their slowest ascent in three years.
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