MetroIntelligence Economic Update by P. DUFFY
Median home sale price up 15 percent year-on-year to new record of $322,000
For the 4-week period ending Dec. 6, the median home sale price increased 15% year over year to $322,000, the highest on record. Pending home sales were up 31% year over year. New listings of homes for sale were up 12% from a year earlier. Active listings (the number of homes listed for sale at any point during the period) fell 30% from 2019 to a new all-time low.
Consumer sentiment index posts surprising early December rise of 5.9 percent
Consumer sentiment posted a surprising increase in early December due to a partisan shift in economic prospects, rising 5.9 percent from November to 81.4. Following Biden’s election, Democrats became much more optimistic, and Republicans much more pessimistic, the opposite of the partisan shift that occurred when Trump was elected. It was nonetheless surprising that the recent resurgence in covid infections and deaths was overwhelmed by partisanship.
Producer Price Index edges up 0.1 percent in November, up 0.8 percent year-on-year
The Producer Price Index for final demand advanced 0.1 percent in November after rising 0.3 percent in October and 0.4 percent in September. The index increased 0.8 percent for the 12 months ended in November, the largest advance since moving up 1.1 percent for the 12 months ended in February.
Traditional retail stores expected to bounce back in 2021, with overall retail sales growing by 3.2 percent
A Colliers report predicts a post-pandemic rebound for brick and mortar stores at the expense of online outlets. While consumer confidence has not returned to pre-pandemic levels, it has seen an upswing, climbing its way into neutral territory and managing to stabilize retail spending. The shift from services to goods backed the sentiment that retail spending held up much better than expected in 2020. Additionally, Black Friday spending hit a new record this year. As we look forward to 2021, total retail sales will grow by 3.2 percent, among other predictions.