Home prices and remodeling spending are slowing down faster than experts anticipated. A new report shows that single-family permits are down 8.4 percent annually, and remodeling spending fell 10.1 percent in March.
May 1, 2019
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Home prices and remodeling spending are slowing down faster than experts anticipated. A new report shows that single-family permits are down 8.4 percent annually, and remodeling spending fell 10.1 percent in March.
The report by property condition data service provider BuildFax also found that remodeling volume was down 9.8 percent year-over-year. The report authors wrote, “March numbers mirror an assessment from the Federal Reserve as Fed Chairman Jerome Powell warned the economy is slowing faster than expected.” BuildFax COO Jonathan Kanarek says that the Fed's decision not to raise rates in 2019 may alleviate some market pressures, CNBC reports.
“The downward trend in housing activity has led to increased focus on the sector. In March, the Fed signaled no additional rate increases in 2019, which could boost investment in the housing market,” Kanarek said. “We may see some relief across maintenance and remodeling indicators, as home sales typically facilitate investment into the existing housing stock.”
