MetroIntelligence Economic Update by P. DUFFY
Case-Shiller Index falls 0.2 percent in November but up 5.1 percent year-on-year
For the first time since January 2023, the U.S. National S&P CoreLogic Case-Shiller Index and 20-City Composite posted 0.2% month-over-month decreases in November, while the 10-City Composite posted a 0.1% decrease. Year-over-year the national index reported a 5.1% annual gain in November, up from a 4.7% rise in the previous month.
Buying in California and Hawaii can cost up to 60% or more of local per-capita incomes
The most overvalued markets to purchase a home tend to be located in California, but also include popular vacation home markets in Hawaii, tech-centered Seattle, Washington, and pandemic-era “Zoomtowns” including Greeley, Colorado, and Boise, Idaho. The most overvalued markets to rent a home mostly include markets in Hawaii, California, New York, Florida and South Carolina. You’ll pay more to buy a median-priced home versus renting in several California MSAs as well as in Hawaii, Washington, Colorado and Utah.
Federal Reserve opts to maintain federal funds rate at current levels for now
In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent. In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans.
https://www.federalreserve.gov/newsevents/pressreleases/monetary20240131a.htm