In this episode of Driving at Home, Dr. Clare Losey and Emily Chenevert discuss Chair Powell's comments on inflation and the uncertainty of the economic path forward. Markets showed a cautious response, with stock market dips and fluctuations in the 10-year treasury yield. Dr. Losey discusses the possibility of a rate cut–potentially happening in May or June.

The conversation moves to the strong jobs report which surpassed expectations, suggesting a robust labor market. This robustness is a double-edged sword; while it indicates economic resilience, it also makes it harder for inflation to soften as the Fed would like. The impact on the real estate market is significant, with Dr. Losey advising real estate professionals to remain steady-handed, as significant shifts in interest rates are unlikely to come quickly.

Lastly, the focus turns to Austin's housing market, highlighting its rapid population growth and the need for continued infrastructure and housing development to keep pace with the projected population increase. Policies like the Home Initiative and the recent passage of phase one, which allows up to three units on a lot within the City of Austin, are discussed as critical for managing growth. Dr. Losey points out Austin's relative affordability compared to the East and West Coasts but notes it is losing this advantage to other Texas cities. The episode concludes with a review of current real estate market data showing momentum in listings and closed sales and a discussion on mortgage rates, which have remained relatively unchanged, suggesting market acclimatization.

YouTube: https://www.youtube.com/@AustinBoardofREALTORS/podcasts 

Apple: https://podcasts.apple.com/us/podcast/driving-it-home-with-abors-housing-economist/id1714289732

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Download the Audio Transcript + Episode Summary: https://www.abor.com/content/uploads/2024/01/DIH-1-30-24.pdf

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