Getting Graphic is a semi-sort-of-irregular collection of our favorite BIG real estate-related chart(s).
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