Yves right here. It’s shocking to see continued ache within the housing market, as contrasted with client spending persevering with to be fairly good regardless of ongoing Fed “kill the labor market” efforts. Recall that Fed economists have lengthy seen residence costs as a a lot larger driver of the wealth impact (“individuals who really feel richer spend extra”) than inventory costs. You’d assume that works in reverse. Maybe there’s lots of anchoring in how homeowners see the worth of native homes, that even when they know intellectually that costs are down, they select to imagine on some stage that the previous costs, and even greater, are usually not far off.
