MetroIntelligence Economic Update by P. DUFFY
June Producer Price Index falls 0.2 percent from May and 0.8 percent year-on-year
The Producer Price Index for final demand fell 0.2 percent in June, following a 0.4-percent increase in May and a 1.3-percent decline in April, and is down 0.8 percent for the 12 months ended in June. Prices for final demand less foods, energy, and trade services – also known as the ‘core ‘index — advanced 0.3 percent in June, the largest increase since a 0.3-percent rise in January. For the 12 months ended in June, the core index edged down 0.1 percent.
Hotel and retail properties hardest hit from coronavirus pandemic
The commercial real estate sector continues to struggle in July as a result of the coronavirus pandemic. The hotel and retail property markets are the heaviest hit, while multi-family and industrial are performing relatively well, with the office sector in the middle of the pack. The improving job market is the silver lining on the economic horizon, but the resurgence of coronavirus cases is casting a pall on the job recovery and the continued opening of businesses that underpin the generation of rental income for commercial and multifamily properties.
Zillow Weekly Market Report shows a strong seller’s market
Homes once again went under contract at their fastest pace since at least 2018 (when Zillow began tracking the data), tying a record set last week. Homes sold in the week ending July 4 were typically on the market for 20 days before a contract to sell was signed, a full week faster than the same period last year. New for-sale listings dropped 1.5% from the previous week. They are now 7.9% below last month’s level, and down 27.2% from a year ago. Total for-sale inventory is 22.4% lower than during the same week last year.