Impact of Cost of Living on CPI

The cost of living accounts for approximately 30% of the Consumer Price Index (CPI), making it a crucial indicator for assessing overall price stability. Recent data shows that pressures from the cost of living are diminishing, which could alleviate CPI growth and thereby exert a restraining effect on inflation.

If CPI data released by the United States indicates a clear easing trend, it could raise expectations of interest rate cuts by the Federal Reserve this year.

Current State of the Real Estate Market

By the end of May this year, the month-end inventory of both new and existing homes for sale in the United States increased significantly compared to the same period last year, rising by approximately 13% and 18%, respectively.

Meanwhile, over the past year, sales of new homes have decreased by about 16% and sales of existing homes by about 3%. Increased supply and reduced demand will exert pressure on housing price growth.

Data indicates that the median sale price of homes in the United States in May was $442,500, which is nearly unchanged from $441,000 in the same period last year. Additionally, due to mortgage rates remaining near a 20-year high of about 7%, many potential buyers are unable to afford homes, leading to a slowdown in housing demand.

The above market data indicates that the U.S. real estate market is facing challenges of increased supply and weak demand, which could affect the stability of future housing prices and market activity.