Tim Rood on FBN: How Will Easing Inflation Affect Housing Demand?
Inflation eased in April, with the consumer-price index rising 4.9%, the Labor Department reported on May 10. That's down slightly from the previous month's spike of 5%, and well below the recent peak of 9.1% in June 2022. Tim Rood, SitusAMC's Head of Government and Industry Relations, spoke with Neil Cavuto on Fox Business News about how the trend may play out in the housing market.
"I think that’s going to be good news for the housing market, because demand is still there despite the fact that there is very little supply... and affordability is the worst it’s been probably on record," Rood said. The number of homes for sale in April was about half the level of April 2019, according to the National Association of Realtors, as sellers remain reluctant to give up their low mortgage rates locked in before the Federal Reserve began a series of aggressive hikes over the last two years.
While the market has given up some of the roughly 30% price appreciation it saw during the Covid-19 pandemic, prices in most metros are still up year over year, Rood added.
Watch the interview above.