Getting Graphic is a semi-sort-of-irregular collection of our favorite BIG real estate-related chart(s).
Click here for full sized graphic [pdf].
The Joint Center for Housing at Harvard University released its quarterly The Leading Indicator for Remodeling Activity (LIRA):
“As homeowners become increasingly concerned about falling house prices and a slowing economy, home improvement spending is dragging” explains Nicolas P. Retsinas, director of the Joint Center for Housing Studies. “Coupled with very modest home sales, spending levels are likely to fall.”
Economic conditions are currently mixed and the futures markets are projecting the 65% likelihood of the Fed reducing rates by another 1/4 point, with more decreases in the future. The impact of the housing market has not had a chance to completely impact the economy. During the recent housing boom, rising labor and material costs were kept in check by low mortgage rates.
Remodeling expenditures are projected to decline through mid-2008 although I must admit that seems conservative. The LIRA indicator is a moving average and the impact of tightening credit during the quarter is likely not included in the report results.
Tags: Harvard JCHS
It was Nicholas Retsinas who was promoting the idea that prices in the last 1-2 years were fair-value nationwide, and that we shouldn’t expect to see those prices go down much in the future. Added shame bonus: he is a fellow Greek. He’ll be one of the last to revise anything downwards.
Harvard: too much pomp, not enough circumstance.