How the Pandemic Is Creating an Odd Boom in Real Estate

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The pandemic is creating this odd boom in real estate. I'm David Brancaccio people lucky enough to keep their jobs during this pandemic seemed to be pondering their living situations a lot. The quarterly sales reporter by home. Depot today were up twenty five percent year-on-year increase double what was expected, and there's news that builders started work on a lot of new single family homes. Last month up twenty three percent Jeffrey Cleveland is the chief economist at the Investment Company Payden and Regal in Los. Angeles Good Morning Good Morning, David I mean you look at this new home data and you want a statistic. Leading Economic Indicators. Which sometimes, it is during normal times. But how much can we draw about the wider economy? What kind of conclusions can we draw about the wider economy based on construction of new homes? The reason why that tells us a lot about the economy is because housing is tied in to the web of the economy. So you know intimately there's employment they're spending the goes into a new home activity, and so you tend to see good sales data as well. I think in part that's why we are seeing retail sales bounce in recent months in sympathy with the housing data. Also things like spending at Home Depot, which we're hearing was topping expectations here for the second quarter. There's an inequality angle though because if you're have the wherewithal during pandemic to think about buying a new house so that the developers get all excited about building new homes. I mean, that's some people in this economy, but others are renters and the living more tenuously. WELL WE S-. We saw yesterday data on mortgage delinquencies switcher starting to creep up. But I am worried David that one of the things fueling all this. It's made this recession unique is the federal. Relief payments that went out really through the months of April May June July big chunk of that ended in. July and as yet it's unclear how or when that will be extended and I and I think that you know leaves question marks for the durability of this

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