Calculated Risk

Q1 GDP Tracking: Movin' on Up

From BofA:
Since our update last week, 1Q GDP tracking is up two-tenths to 2.1% q/q saar. [Apr 19th estimate]
emphasis added
From Goldman:
We left our Q1 GDP forecast unchanged at +3.1% (qoq ar) and our domestic final sales forecast also unchanged at +3.1% (qoq ar). [Apr 18th estimate]
And from the Altanta Fed: GDPNow
The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the first quarter of 2024 is 2.9 percent on April 16, up from 2.8 percent on April 15. [April 16th estimate]

NMHC: "Apartment Market Continues to Loosen"

Today, in the CalculatedRisk Real Estate Newsletter: NMHC: "Apartment Market Continues to Loosen"

Excerpt:
From the NMHC: Apartment Market Continues to Loosen Amidst Worsening Financing Conditions
Apartment market conditions continued to weaken in the National Multifamily Housing Council’s (NMHC’s) Quarterly Survey of Apartment Market Conditions for April 2024. With the exception of Sales Volume (52), which turned positive this quarter, the Market Tightness (41), Equity Financing (49), and Debt Financing (44) indexes all came in below the breakeven level (50).
...
"[T]he U.S. apartment market continues to absorb historic levels of new supply, resulting in rising vacancy rates and decreasing rent growth.
...
NMHC Apartment Indx
The Market Tightness Index came in at 41 this quarter – below the breakeven level (50) – indicating looser market conditions for the seventh consecutive quarter. That said, a plurality of respondents (42%) thought market conditions were unchanged compared to three months ago, while 37% thought markets have become looser. Twenty percent of respondents reported tighter markets than three months ago, up from 5% in January.
The quarterly index increased to 41 in April from 23 in January. Any reading below 50 indicates looser conditions from the previous quarter.

This index has been an excellent leading indicator for rents and vacancy rates, and this suggests higher vacancy rates and a further weakness in asking rents. This is the seventh consecutive quarter with looser conditions than the previous quarter.
There is much more in the article.

Hotels: Occupancy Rate Increased 2.8% Year-over-year

From STR: U.S. hotel results for week ending 13 April
Helped by the total solar eclipse, U.S. hotel performance increased from the previous week, according to CoStar’s latest data through 13 April. ...

7-13 April 2024 (percentage change from comparable week in 2023):

Occupancy: 65.8% (+2.8%)
• Average daily rate (ADR): US$160.20 (+2.9%)
• Revenue per available room (RevPAR): US$105.48 (+5.8%)
emphasis added
The following graph shows the seasonal pattern for the hotel occupancy rate using the four-week average.
Hotel Occupancy RateClick on graph for larger image.

The red line is for 2024, black is 2020, blue is the median, and dashed light blue is for 2023.  Dashed purple is for 2018, the record year for hotel occupancy. 
The 4-week average of the occupancy rate is tracking last year, and also at the median rate for the period 2000 through 2023 (Blue).

Note: Y-axis doesn't start at zero to better show the seasonal change.
The 4-week average of the occupancy rate will move mostly sideways seasonally until the summer travel season.

Realtor.com Reports Active Inventory UP 29.1% YoY; New Listings Up 7.2% YoY

What this means: On a weekly basis, Realtor.com reports the year-over-year change in active inventory and new listings. On a monthly basis, they report total inventory. For March, Realtor.com reported inventory was up 23.5% YoY, but still down almost 38% compared to March 2017 to 2019 levels. 
 Now - on a weekly basis - inventory is up 29.1% YoY.

Realtor.com has monthly and weekly data on the existing home market. Here is their weekly report: Weekly Housing Trends View—Data Week Ending April 13, 2024
Active inventory increased, with for-sale homes 29.1% above year-ago levels.

For the 23rd week in a row, there were more homes listed for sale compared with the previous year, giving homebuyers a wider selection to choose from. However, this week’s increase was not as high as the 30.4% growth seen last week, possibly suggesting a slowdown in inventory growth. This could be due to the continued impact of high mortgage rates, which might be discouraging some sellers from listing their homes.

New listings–a measure of sellers putting homes up for sale–were up this week, by 7.2% from one year ago.

Following some ups and downs around Easter, sellers kept putting homes on the market at a faster rate compared with last year, with a 7.2% increase in newly listed homes. However, this growth rate is slower than what we’ve seen since early February.
Realtor YoY Active ListingsHere is a graph of the year-over-year change in inventory according to realtor.com

Inventory was up year-over-year for the 23rd consecutive week following 20 consecutive weeks with a YoY decrease in inventory.  
Inventory is still historically very low.
New listings remain below typical pre-pandemic levels although increasing.