The Financial Week Ahead: How Will It Affect DALLAS REAL ESTATE?

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This is the week before Labor Day, and starting today we will be hit with all kinds of national economic news that might make us want to get out of town to our second homes sooner rather than later. (And start drinking.) Now I have some GOOD real estate news  — a mega mega sale is underway in town — stay tuned —  and I am hearing that some agents are busier than ever. They are working harder to get sales through, I’m not going to lie, but the good news is that money is going into the Title Companies. But as always, national doom & gloom reports, accurate as they may be, trickle down to us. When people who relocate here cannot shed properties, it hinders their ability to buy a new home. So they lease. And as I told you last week, leasing is out of sight in Dallas.

We will hear about Personal Spending and Personal Income, as well as Pending Home Sales. I expect those numbers to be flat or down.

Personal Consumption Expenditures (PCE) Index,  the Fed’s favorite gauge of inflation, will also be reported. Since inflation drives up Bonds and home loan rates, this is an important indicator to watch. However, even with mortgage rates at historic lows people are still having a tough time getting home financing. So I guess the deal is if inflation pops up, property owners will be happy, but even more folks could be locked out of home ownership. Grrrrreat.

Manufacturing reports will also hit this week, and I am not expecting miracles.

And of course, unemployment.  ADP’s National Employment Report is out on Wednesday. ADP is one of the nation’s largest payroll-processing companies, so it knows who’s getting a paycheck and who is not. Since this administration has been so adept at creating jobs — NOT! — I anticipate more bad news. Brace yourself: in last week’s report, Initial Jobless Claims were reported higher than expected. The labor market remains weak, and when people don’t have jobs they don’t get mortgages to buy homes.

So when the Jobs Report comes out on Friday, we can all begin drinking early for Labor Day. Where’s our little ray of sunshine? We are in Texas where values are stable, not plummeting, and about the only place besides D.C. where jobs are being created. Maybe those jobs are hamburger flippers at In N Out Burgers but guess what: at least you can eat.

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Candy Evans, founder and publisher of CandysDirt.com, is one of the nation’s leading real estate reporters.

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