Economy Shows Stability as Real Estate Prices Drop 1.6%

Senior Investment Strategist BeiChen Lin at Russell Investments has asserted that neither the U.S. labor market nor the real estate market appears to be overheating. This assessment is crucial as it suggests that these sectors are not contributing to inflationary pressures, which is a positive sign for the economy.

Lin noted that while recent surveys indicate increased consumer concerns about inflation, the 5Y5Y inflation breakeven rate remains close to 2%. This stability in inflation expectations is encouraging and suggests that the economy is not experiencing runaway inflation. The labor market has shown steady job growth, with the addition of 151,000 jobs last month. However, the unemployment rate slightly increased to 4.1%. This increase is not necessarily a negative indicator, as it suggests that the labor market is not overheating and that there is still room for job growth without putting upward pressure on wages and prices.

The real estate market has also shown signs of stability, with global real house prices declining by 1.6% year on year in real terms during the third quarter of 2024. This decline in real estate prices is a positive sign for the economy, as it indicates that the market is not overheating and that there is still room for growth without putting upward pressure on prices. The stability in the real estate market is also a positive sign for the economy, as it indicates that the market is not overheating and that there is still room for growth without putting upward pressure on prices.

Overall, the stability in both the labor market and real estate market is a positive sign for the economy. It indicates that the economy is not overheating and that there is still room for growth without putting upward pressure on prices. This stability is also a positive sign for the economy, as it indicates that the economy is not overheating and that there is still room for growth without putting upward pressure on prices. The stability in the labor market and real estate market is a positive sign for the economy, as it indicates that the economy is not overheating and that there is still room for growth without putting upward pressure on prices.