Texas Outlook
Home Sales in Texas decline
Home sales are dropping in several major Texas cities including the capital Austin, Dallas, and Houston, as homebuyers burdened by historically high mortgage rates and rising housing costs fail to see the appeal of the state's growing inventory.
According to Norada Real Estate Investments, it could be the beginning of "a major correction phase" for the state.
The Lone Star state's housing market boomed during the pandemic, when the rise of remote work allowed out-of-state Americans to relocate to cities offering cheaper homes, lower taxes, and relatively more affordable cost of living, as well as vibrant job markets and sunny weather. This growth in demand at a time when the state, like the rest of the country, was struggling with low levels of inventory, sent home prices skyrocketing.
Economic Outlook
Elliot Eisenberg, Ph.D. is an internationally acclaimed economist and public speaker specializing in making economics fun, relevant and educational. Dr. Eisenberg earned a B.A. in economics with first class honors from McGill University in Montreal, as well as a Master and Ph.D. in public administration from Syracuse University. Eisenberg is the Chief Economist for GraphsandLaughs, LLC, a Miami-based economic consultancy that serves a variety of clients across the United States. He writes a syndicated column and authors a daily 70-word commentary on the economy that is available at www.econ70.com.
Tariff Takedown
The unexpectedly large reduction in Chinese tariffs is good. This reduces the overall average import tariff to 12% from 25%. But tariffs on imported Chinese goods remain 30%, the reprieve is only for 90 days, and China hasn’t made any concessions. Significant uncertainty remains. Critically, the trend is positive, no new tariffs have been imposed since Liberation Day. This move meaningfully reduces the likelihood of a June/July Fed rate cut.
