The roads will be crowded this Fourth of July weekend, but travelers have at least one thing going for them: much cheaper gas prices than last year.
A record-setting 43.2 million Americans are expected to travel by car this holiday weekend, according to AAA. That's 2.4% higher than last Fourth of July.
And yet gasoline prices are much lower. The national average for regular gasoline dipped to $3.55 a gallon on Thursday, according to AAA. A year ago, a gallon of regular sold for an average of $4.87 a gallon.
That kind of price drop is almost unprecedented.
During the week ending June 26, the average gas price was $3.57 a gallon, according to the US Energy Information Administration. That's down by $1.30, or 27%, from the same period last year.
This is the second-biggest one-year price drop in the week before the Fourth of July since EIA data began 33 years ago, according to John LaForge, who leads real asset strategy for the Wells Fargo Investment Institute.
The only bigger 12-month drop occurred during a historic downturn: the Great Recession. Gas prices plunged by $1.45 a gallon, or 35%, between June 30, 2008 and June 29, 2009.
"This is terrific. Gasoline prices are a leading economic indicator for many Americans," said Patrick De Haan, head of petroleum analysis at GasBuddy.
The average motorist is spending $20 less per fill-up than at this point last year, De Haan said.
Although pump prices have retreated from last year's record highs, gas prices were cheaper in the summer of 2021 and certainly in 2020 when Covid-19 shut down large swaths of the economy.
Pump prices plunge in California, Ohio
Still, over the past 12 months, gas prices are down in all 50 states, according to AAA.
Drivers in Indiana have enjoyed the biggest drop in gas prices over the past year, with the state average tumbling by $1.58 a gallon. Other states with big gas price drops include Ohio ($1.48), California ($1.47) and Illinois ($1.47), according to AAA.
The smallest 12-month decline in gas prices was in the state of Washington, where the average is only down by 50 cents a gallon. Washington recently replaced California with the unwanted distinction of having America's most expensive gas prices.
Of course, consumers are still grappling with a high cost of living at the grocery store, when shopping for cars and paying rent.
"Americans have been hit by so many other bullets. They might save at the pump but they are spending more elsewhere," said De Haan.
High inflation elsewhere is a central reason De Haan anticipates gasoline demand over the Fourth of July weekend will be 5% to 10% below 2019 levels. That's despite the fact that AAA expects the number of people driving to their destinations this weekend will be 4% higher than in 2019.
Why gas prices are down
The tumble in gas prices is an undeniable positive for consumers. However, not all the factors behind the drop are encouraging.
After spiking last year, oil prices have plunged in part due to concerns about the Federal Reserve's interest rate hikes slowing the economy into a recession.
Another factor: Despite fears of disruptions, Russia's oil exports have not been derailed by the war in Ukraine or sanctions from the West.
"We believe prices are stuck in the near term," Wells Fargo's LaForge said, "as markets weigh concerns of an expected recession against global supply."
But beyond that, LaForge anticipates the oil market will get tighter and "push prices higher" next year.
One wildcard is the war in Ukraine following the short-lived Wagner uprising in Russia that poses a challenge to Vladimir Putin's grip on power.
Record number of Americans are expected to travel this Independence Day weekend.(iStock)
The national average price for a gallon of gas was $3.54 for the week ending June 29, according to the latest report by AAA. That marked a four-cent drop from the previous week and could spell good news for motorists getting ready to travel for the 4th of July weekend.
"Drivers hitting the road for the Fourth of July holiday will find the gift of lower gas prices across most of the country," AAA said in its report.
Gas demand decreased from 9.38 to 9.31 million barrels a day last week, according to the Energy Information Administration (EIA). Additionally, total domestic gasoline stocks increased by 600,000 barrels to 220 million barrels.
"Lower gas demand amid increasing supply has helped to limit pump price increases," AAA said in its report. "If demand remains low, pump prices will likely continue to decline through next week."
Despite overall high gas prices, many Americans aren’t putting off summer travel this year, AAA reported.
"Gas prices are $1.30 per gallon less this year than last, but they are still high compared to historical averages," AAA spokesperson Andrew Gross said. "The previous record average high price for gas on July Fourth was $4.10 in 2008, while the low was $1.39 in 2001. Yet despite currently elevated prices, drivers are not cutting back on travel this summer."
If you want to cut costs on automobile travel this summer, it could benefit you to switch auto insurance providers and potentially lower your premiums. Visit Credible to get quotes from multiple companies, without affecting your credit score.
With the national average price for gas dipping last week, some areas saw sharper declines. Here are the 10 states which had the greatest decreases in their average prices, according to AAA.
Arizona (−16 cents)
Ohio (−11 cents)
Indiana (−11 cents)
Wisconsin (−11 cents)
Illinois (−9 cents)
Kentucky (−6 cents)
Nevada (−6 cents)
Georgia (−6 cents)
Utah (−6 cents)
Florida (−5 cents)
These are the top 10 least expensive markets, based on AAA's analysis.
Despite high inflation and fears of recession, many Americans are projected to travel in record numbers this 4th of July weekend, according to a study by AAA.
In fact, 50.7 million Americans are expected to travel 50 or more miles from home this 4th of July weekend, according to the study. That would break the previous July Fourth weekend travel record of 49 million people in 2019. In particular, about 43.2 million people are expected to drive to their destinations, AAA said. That would mark an increase of 2.4% from last year.
"We’ve never projected travel numbers this high for Independence Day weekend," AAA Senior Vice President Paula Twidale said in a statement. "What this tells us is that despite inventory being limited and some prices 50% higher, consumers are not cutting back on travel this summer. Many of them heeded our advice and booked early, another sign of strong travel demand."
If you’re looking to reduce your overall car costs, you could consider changing your auto insurance provider to help you lower your monthly payments. Visit Credible to speak with a car insurance expert and get your questions answered.
Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.
Get all the essential market news and expert opinions in one place with our daily newsletter. Receive a comprehensive recap of the day's top stories directly to your inbox.Sign up here!
(Kitco News) After testing $1,900 an ounce, gold has come out on top, saving itself from a more significant selloff if prices dropped below this psychologically important level.
Gold is wrapping up the second quarter down more than $80, the worst performance since the third quarter of last year. At the time of writing, August Comex gold futures were trading at $1,925.80 an ounce, up 0.41% on the day.
But there have been some positive signs. Gold's downtrend has been slow and steady and not sudden and steep. Also, it held the $1,900 an ounce level.
"I'm surprised by the resilience in gold given the moves in the U.S. bond market – still, for now, I question if growth equity (such as the NAS100) continues to march higher if U.S. bond yields are trending higher, and how this offers the USD tailwinds," said Pepperstone's head of research Chris Weston.
Federal Reserve Chair Jerome Powell's message of at least two more rate hikes this year filtered through the market, weighing gold down and pushing the U.S. dollar higher.
But the fact that prices have not fallen below $1,900 an ounce shows resilience in the gold market, with increasing sentiment that the equity rally won't last.
"While an environment in which interest rates are likely to continue rising is unhelpful for this non-yield bearing asset, investors are still not convinced of the bull case for equities, especially with some countries potentially already in recession," said Kinesis Money market analyst Rupert Rowling.
What's holding gold up?
If the $1,900 was taken out, OANDA senior market analyst Edward Moya told Kitco News that there would be significant technical selling.
But one of the reasons gold held up was because markets are yet to price in two rate hikes by the Fed, Moya pointed out. According to the CME FedWatch Tool, there is a nearly 90% chance of a 25-basis-point rate hike in July and a 70% chance of another pause in September.
"Will inflation prove stickier, and will the Fed deliver two more rate hikes? Is it being priced in yet? No," Moya said. "Today's PCE data showed that inflation is cooling, but barely."
Right now, gold is not very attractive, but it could have its big moment when the market reassesses how much more aggressive the Fed will have to be to bring down inflation, Moya added.
"More Fed rate hikes are normally bearish for gold. But given the positioning in the market, we could see a stock market selloff and a return of strong demand for the safe haven," he said. "That is not an environment where gold will be collapsing."
Moya is anticipating range-bound trading in the short term, with risks to the downside if gold drops below $1,900 an ounce. "If we break below that level, it could get ugly. But I don't think it is going to happen," he said.
This type of trading might be enough to keep gold from falling lower. But at the same time, significant gains are not likely in the short term, said TD Securities global head of commodity strategy Bart Melek.
"At 4.6%, the U.S. May y/y core PCE is slightly lower than expected, and with weaker personal May personal spending, the market drove yields lower," Melek said. "With that, the USD dropped, and gold bounced convincingly above $1,900/oz. This reduces the risk of a drop down to the 200d ma, for now."
With more evidence that inflation in the U.S. might have peaked, the selloff in gold has likely run its course, Walsh Trading co-director Sean Lusk told Kitco News. "But gold better holds this level," said Lusk. "Gold needs to take out $1,966 to turn bullish."
The precious metal will move higher only after the equity market reverses its rally, Lusk added. "If the stock market keeps chugging, there will be less demand for gold. Stock market rallies will bring up inflation, and that will keep the Fed raising rates, with the U.S. dollar being the winner in this," he said. "Don't think the stock market will extend here as we get to Q3."
The U.S. dollar's strength is why rallies in gold have been sold, Lusk added.
If gold drops below $1,900 an ounce, investors should pay attention to $1,850-$1,814 levels. "If we can't hold that, then a drop to $1,720 is possible. That's a bear scenario," he said.
Next week's data
Monday: ISM manufacturing PMI
Thursday: U.S. jobless claims, ADP nonfarm employment, ISM services PMI
The US dollar weakened following consumer inflation data.
DXY drops 0.4%, retreating from two-week highs.
XAU/USD reached its highest level in three days.
Gold prices are having their best day in weeks on Friday, boosted by a decline in the US dollar across the board. XAU/USD jumped from near $1,905 to $1,920 following the release of the US Core Personal Consumption Expenditure Price Index.
The consumption inflation figures showed a decline slightly higher than expected and triggered a retreat in US yields and boosted equity and commodity prices. The US Core PCE fell in May to 4.6% on an annual basis from 4.7%, while the headline dropped from 4.6% to 3.8%.
These figures softened Federal Reserve rate hike expectations for the next meeting. The focus now turns to next week's US labor market data, which includes the ADP, Jobless Claims (Thursday), and the Nonfarm Payrolls report (Friday).
XAU/USD rebounding
XAU/USD is hovering around $1,915, up less than $10 but enough to make it the best day in weeks. The recovery took place after reaching a low on Thursday at $1,892, the lowest level in three months.
On the upside, XAU/USD is breaking a short-term downtrend line. The next resistance area is $1,920. On the downside, a decline below $1,905 would weaken the short-term outlook for the yellow metal.
"These price adjustments are needed to provide the Postal Service with much needed revenue to achieve the financial stability sought by its Delivering for America 10-year plan," USPS said.
A complete list of the postal service price filing, with prices for all products, can be found on the Postal Regulatory Commission website.
Natalie Neysa Alund covers breaking and trending news for USA TODAY. Reach her at nalund@usatoday.com and follow her on Twitter @nataliealund.
One way to preserve diversity now that the Supreme Court has ruled against two colleges’ race-based admissions policies: Tell people the true price.
Colleges and universities make applicants get admitted before quoting the price they would actually pay. Until recently, this was merely annoying.
Now, it’s glaringly counterproductive to the goal of enrolling freshman classes that look like America.
On Thursday, the Supreme Court ruled that Harvard University and the University of North Carolina’s consideration of students’ race when deciding whether to accept them was unconstitutional. That upends the work of administrators who want to admit a broad range of students, profoundly change their lives and then have them go out and change the world.
Maintaining diversity begins, in part, with schools not scaring away budget-conscious teenagers — many of whom come from low-income communities of color. And one excellent way to do that is to give people a binding price to attend before they go through the trouble of applying.
The lack of guaranteed upfront pricing is a bigger problem than many outside observers realize. The majority of families don’t pay full price for the live-on-campus college experience that millions of teenagers seek. That leaves them waiting for the big money reveal after an offer of admission arrives and colleges send out financial aid award letters.
To determine just how big any discounts might be, applicants must often engage in a monthslong awkward dance. First, apply to the admissions office. Then, if they think they might qualify for need-based aid, seek help from financial aid staff in a separate process.
If you do get in, the financial aid office tells you what it thinks you can afford and may offer so-called need-based aid. The admissions office may also decide what price cuts you deserve — a separate “merit” aid offer that can depend on your high school achievements but have nothing to do with your financial need. If you don’t like the price, you could appeal to one office or the other — or both for a bigger discount.
But even that unpleasantness only happens if you get the memo on how to perform this elaborate choreography. Given the high list prices — and the opacity of the price-setting algorithms that schools use or rent from outside consulting firms to determine the size of their discounts — untold numbers of people give up on higher education before applying for admission at all.
No application means no surprise and delight if your price, upon admission, is actually affordable. Everyone loses.
Legislators figured this out a while back and passed a law requiring every school to post what’s known as a net price calculator, or N.P.C. It gives estimates — but only estimates — of what families might pay.
N.P.C.s are better than nothing, but they can’t always handle complex cases; schools may not update them quickly enough when they change their aid formulas; they don’t always predict merit awards; and they can pose challenges to teenagers whose estranged parents won’t disclose financial data or don’t speak English well. More than onestudy has shown how far-off their estimates can be.
Colleges are aware of this problem, and for prized applicants, they will usually solve it. Athletes receive price quotes, and not just at the Division One level. Why shouldn’t children of immigrants from Somalia or India have the same privilege — or a first-generation student whose only parent is incarcerated?
Some schools give any applicant the white-glove treatment. Colleges like Whitman in Washington and College of Wooster in Ohio will give any interested students a pre-read — before they apply — to tell them how much aid they would receive if they do get in. Other schools probably do something like this. If that’s you, drop me a line; I’d love to hear more and maybe write about it.
There are at least three big challenges with guaranteed college pricing before sending an application. Family income can change a lot from year to year, which makes it harder for a school to guarantee a price — minus any need-based aid — for every year until graduation. Still, merit aid tends to persist, which helps with predicability. In any event, even a freshman-year price guarantee is much better than nothing.
The second challenge is a human resources one. While not every interested student would ask for an upfront price, there’s no way to know the volume of requests colleges would face until they try. Many schools hire a fleet of part-time readers each year to review applications for admission. Couldn’t they pull in qualified alumni to help with price quotes?
Then, there is risk. The most obvious way to guarantee price upfront is to improve the net price calculators or use other, better technology — and then have humans intervene on more complicated cases like ones involving divorced parents and small business owners. Legislators are engaged in an ongoing effort to improve the calculators and make it possible to fill out a single, universal one instead of one for each school.
The resulting “You’d pay no more than” quote would cost schools money if they miss or misjudge assets that families could otherwise tap to pay more tuition. But schools with a reasonable amount of resources could probably bear that risk in exchange for a pipeline of diverse students.
The schools that offer upfront pricing will gain a competitive advantage. They will also be providing transparency for everyone for the first time — not just the teenagers who have had every advantage in their lives so far.
NEW YORK, June 28 (Reuters) - Cocoa prices surged to the highest in 46 years on the Intercontinental Exchange in London on Wednesday as bad weather in West Africa threatened production prospects for the main suppliers of the primary raw material used to make chocolate.
The benchmark September contract for cocoa in London gained more than 2% on Wednesday to 2,590 pounds per metric ton. The session high was the highest price since 1977 at 2,594 pounds.
Prices are rising in reaction to a tight market for cocoa beans, which are mainly produced in Ivory Coast and Ghana. Arrivals of cocoa at Ivory Coast ports for export are down nearly 5% this season.
The International Cocoa Organization (ICCO) widened this month its forecast for a global deficit on cocoa supply from 60,000 metric tons previously to 142,000 metric tons.
"It is the second consecutive season with a supply deficit," said Leonardo Rosseti, cocoa analyst at broker StoneX.
He said that the stocks-to-use ratio, an indicator of cocoa availability in the market, is expected to fall to 32.2%, the lowest since the 1984/85 season.
Meanwhile, above-average rains in Ivory Coast are causing flooding in some cocoa fields, potentially hurting the main crop that starts in October.
Rosseti said that the rains are also hurting the drying process for cocoa beans that have already been collected.
Refinitiv Commodities Research said it expects moderate to high rainfall in the West African cocoa belt over the next 10 days.
Cocoa prices rose in New York as well. The September contract gained 2.7% to $3,348 a metric ton, its highest in 7-1/2 years.
In other soft commodities, July raw sugar fell 0.46 cent, or 2%, at 22.57 cents per lb. Arabica coffee settled down 5 cents, or 3%, at $1.6195 per lb, while robusta coffee fell $99, or 3.6%, at $2,616 a metric ton.
Reporting by Maytaal Angel Editing by Mark Potter and David Gregorio
Award-nominated reporter covering high impact events in soft commodities and agricultural commodities more broadly, analysing industry trends and uncovering developments that drive the market. Work has included market moving investigative stories on commodity trade flows, corporate strategy, farmer poverty, sustainability, climate change and government policy.
Covers agricultural commodities and biofuels, including production, trade and transportation, based in New York. Former Brazil correspondent and climate/environment reporter. Brazilian, holds a Bachelor of Journalism degree and has done post-graduate studies in Environmental Reporting from Germany's InWent Institute and Foreign Policy and International Political Economy from Harvard University. Avid soccer and tennis player.
Firming natural gas prices of late in the U.S. are not translating to as much of an increase for Canadian natural gas prices, meaning that the basis – or price discount – for benchmark AECO prices has been widening (i.e., becoming a greater discount). When considering the basis for the prompt month AECO contract price versus prompt month NYMEX-CME natural gas contract price, the discount has shifted from $(0.70)/MMBtu at start of June to near $(1.20)/MMBtu in recent days (blue dashed circle in top chart), meaning that Canadian gas is relatively cheaper by about $0.50/MMBtu than it was just a few weeks ago.
Relatively cheaper gas has been spurring more exports of Canadian gas to the U.S., with gross exports having risen from the 7.5 Bcf/d range at the start of June to above 9 Bcf/d in the past few days (green dashed circle, bottom chart). With U.S. demand stronger on gas burn for power generation, especially in the northern tier states where Canadian gas can make a difference in balancing U.S. regional markets, we expect that recently elevated levels of exports can be maintained well into July and possibly August. These elevated exports should provide at least some small relief for oversupplied gas markets in Western Canada.
The Tesla Model 3 is the least expensive model on the market.Tesla
There's a wide range of prices between the most expensive and cheapest Tesla models.
There are also other financial considerations to make if you're considering a purchase, including battery and Tesla charging costs.
Tesla changes its pricing frequently for its different models.
Tesla CEO Elon Musk has dropped the prices of Tesla models six times since the start of the year, kicking off Tesla price wars with mainstream car brands like Ford and GM.
Here's a look at where the pricing stands for each of the models.
What is the cheapest Tesla model?
The Tesla Model 3 is the cheapest model. The starting price for the Tesla Model 3 is around $40,240 for the Real Wheel Drive, $47,240 for the Long Range variant, and $53,240 for the Performance variant.
The next cheapest model is the Tesla Model Y. The starting price for the Tesla Model Y is around $47,490 for the All Wheel Drive and $54,490 for the Performance model.
In early 2023, extensive Tesla markdowns on the prices of the Model 3 and Model Y hit the market, making some cost less than the average new car in the US.
What is the most expensive Tesla model?
Tesla Model S and the Model X are the most expensive models. The Tesla Model S is around $88,490 for the Long Range variant and $108,490 for the Plaid variant.
The starting price for the Tesla Model X: The starting price for the Tesla Model X is around $98,490 and $108,490 for the Plaid variant.
The Tesla Roaster is expected to be the most expensive model when it enters production, at a base price of around $200,000.
Do Teslas qualify for a tax credit?
As part of the 2023 Inflation Reduction Act, some Tesla models are eligible for a $7,500 EV tax credit, while others can receive a smaller credit of $3,750. As of June, three Model Y variants were eligible for full credit while only the Performance version of the Model 3 can receive the full $7,500 credit. The two other Model 3 versions are eligible for half credit.
How long do Teslas last?
A big concern for prospective EV buyers is if the battery will need replacing. EV battery replacements could cost anywhere from $5,000 to $20,000, according to Recurrent.
In Tesla's 2021 impact report, it said that the company's battery packs are designed to outlast the vehicle. "We estimate that a vehicle gets scrapped after approximately 200,000 miles of usage in the U.S. and roughly 150,000 miles in Europe," the report said.
Tesla's batteries are also covered by a warranty. Models have slightly different warranties, but they're generally covered for 8 years or between 100,000-150,000 miles (whatever comes first).
While EVs as a category do have more frequent problems than other vehicles such as issues with battery packs and charging, Tesla models stand out for their reliability.
Is Tesla charging free?
No, Tesla charging isn't free, and the cost varies based on if you charge at home or at one of Tesla's proprietary Superchargers.
At a Supercharger, charging costs vary based on the speed across four tiers and are based on time — not range or energy added to your vehicle. Charges will also change based on electricity costs.
On average, a Tesla will charge for about 4.5 cents per mile, according to EnergySage estimates, depending on local electricity costs. A full charge on a level-2 charger will run you about $15.52 on average, the site says, though costs vary for each model.
The cost of charging a Tesla is more than 3 times cheaper per mile than the cost of fueling a gas-powered car.
EnergySage estimates that it costs $614.95 to charge your Tesla per year. In comparison, gas-powered cars cost an average of $1,850.42 to fuel per year.
Tesla Superchargers also charge an "idle fee" if a car remains plugged in after it is fully charged, in order to serve more customers efficiently.
Some Tesla vehicles also include free charging, which is sometimes added as an incentive when purchasing. Free charging is also available through Tesla's referral program.
To get the cheapest charging, you'll need to charge at home. If you already have a 240-volt outlet in your garage (equivalent to level 2), you can simply buy a charger and plug it in. Otherwise, an electrician will likely need to install one for you. Here's what to know about charging Teslas at home.
Last month’s sales of newly constructed single-family homes rose to the highest level since February 2022. The report from the U.S. Census Bureau and the Department of Housing and Urban Development put the seasonally adjusted annual rate for May at 763,000 units, an increase of 12.2 percent compared to the April. That rate of 680,000 was revised down from an original estimate of 683,000 units. On a non-adjusted basis, there were 73,000 homes sold during the month, up from 60,000 in April.
Analysts had expected a much smaller number. Those polled by Econoday had a consensus estimate of 667,000 while Trading Economics had a forecast of 675,000 units.
The increase in sales, however, was a negative for new home inventory. At the end of the reporting period, there were 428,000 homes available for sale, down 4,000 from the prior month. This was a 6.7-month supply at the current sales pace. Only 69,000 of these units are ready for occupancy.
Economist Robert Dietz of the National Association of Home Builders commented, “Demand for new homes is strengthening because of a lack of existing home inventory. There is only a 3-month’ supply of existing single-family homes on the market. New home inventory was 31 percent of total inventory in May. Historically it is typically 10 percent to 15 percent. As a result, the pace of resales is down 20 percent from a year ago, while the rate of new home sales is up 20 percent from a year ago.
Thus far in 2023, there have been 308,000 new homes sold, down from 323,000 in the first five months of 2022. This is a decline of 4.7 percent.
There was more good news for potential homebuyers. The median price of homes sold during the month was $416,300, significantly lower than the $450,700 in May 2022. The average price fell from $521,500 to $487,300.
Dietz continued, “While builders continue to grapple with elevated construction costs, an encouraging sign is a big gain in home sales priced in the $200,000 to $300,000 price range. In May 2022, just 5,000 homes sold in this range. That total increased to 12,000 in May 2023.
Sales during the month rose in all four major regions and annual sales were higher in three of them. In the Northeast, in fact, they soared 110.5 percent year-over-year and rose 17.6 percent for the month. The Midwest saw a monthly increase of 4.1 percent and a 40.0 percent gain compared to the prior May. The South saw sales up 11.3 percent for the month and 22.0 percent for the year. While the West saw an increase of 17.4 percent from April, annual sales were lower by 0.6 percent.
Ryan Ratliff (C), Real Estate Sales Associate with Re/Max Advance Realty, shows Ryan Paredes (L) and Ariadna Paredes a home for sale on April 20, 2023 in Cutler Bay, Florida.
Joe Raedle | Getty Images
Home prices peaked last June, falling sharply through the beginning of this year. Now, they're recovering steadily.
Home prices in April were still down 0.2% compared with April 2022, according to the S&P CoreLogic Case-Shiller national home price index. They were, however, 0.5% higher month to month, after seasonal adjustments. Prices are now just 2.4% below their June 2022 peak.
Miami, Chicago, and Atlanta were still seeing big gains in April, with prices up 5.2%, 4.1% and 3.5% year over year, respectively. When compared with a year ago, the price declines were larger in April than in March in 17 of the top 20 index cities. Boston, San Francisco and Cleveland showed slight increases.
A major jump in mortgage rates last summer caused a decline in prices. But, rates are still high, and homebuyers appear to be adjusting to the new normal. Demand is strengthening.
"The ongoing recovery in home prices is broadly based," Craig Lazzara, managing director at S&P DJI, said in a release.
"If I were trying to make a case that the decline in home prices that began in June 2022 had definitively ended in January 2023, April's data would bolster my argument," he added. "Whether we see further support for that view in coming months will depend on the how well the market navigates the challenges posed by current mortgage rates and the continuing possibility of economic weakness."
Before seasonal adjustments, prices rose in all 20 cities in April, as they had also done in March. Seasonally adjusted data showed prices rising in 19 cities in April versus 14 in March.
The average interest rate on the 30-year fixed mortgage is still hovering in the high 6% range, more than double what it was in the first two years of the Covid pandemic, when homebuying surged dramatically.
Buyers, however, are still out in force. But they are coming up against extremely low inventory of homes for sale. Part of that is because the vast majority of homeowners have mortgage rates in the 3% range, which makes them much less likely to want to sell their home and buy another at a higher rate.
"Home price trends are caught in a tug of war between stretched buyer budgets and limited inventory forcing competition despite reduced affordability," Danielle Hale, chief economist for Realtor.com, said in a release. "With high mortgage rates keeping 1 in 7 homeowners from selling, new listings have lagged far behind what we've seen in prior years, pushing buyers to continue to bring their best offers even as home sales are 20% lower than at this time last year."
06/26 Update below. This post was originally published on June 24
While iPhone 15 leaks have uncovered most of Apple’s biggest upgrades, questions remain about the cost of the new lineup, with Pro models expected to increase in price by up to $200. But now there is a dramatic twist.
In a shock move, Apple will allegedly downgrade the manufacturing process for the iPhone 15 Pro and Pro Max’s new A17 chipset, making the chip less efficient but more affordable to produce. The news comes via popular Weibo poster Cell Phone Chip Expert, who has amassed almost 400,000 followers due to a solid track record of chip production leaks.
"The A17 used in stock this year's iPhone 15 Pro and iPhone 15 Pro Max is an N3B process, but the A17 produced at some point next year will be switched to a cost-reducing N3E process, which may be less efficient," the leaker explains.
TSMC makes Apple’s chipsets, and N3B is the company’s bleeding edge, three nanometer (3nm) chip fabrication process. TSMC claims it consumes up to 35% less power while providing better performance than the 5nm A16 chips in the iPhone 14 Pro and Pro Max.
Like N3B, the N3E manufacturing process is still 3nm but has a reduced logic density, making it easier to make, resulting in higher chip yields and lower production costs. The downside is the reduced logic density means the chips have a higher power draw, potentially impacting battery life.
MacRumors
But the real shock for me is the timing. The leaker states that the move will happen in 2024, which would be midcycle for the iPhone 15 lineup, given the new range will launch in September 2023. While it is not unusual for Apple to switch component manufacturers midcycle, it would be highly unusual for the core chip to switch processes.
That said, the transition was endorsed by my contacts, who also said any cost savings for Apple are highly unlikely to be passed down to customers, and price increases for the iPhone 15 Pro and Pro Max are still expected.
Looking for a silver lining? If I had to take a guess, I suspect the chip switch could be in preparation for the iPhone 16 and iPhone 16 Plus rather than midcycle replacements for the iPhone 15 Pro and Pro Max. In recent years, Apple has established a pattern for using last year’s Pro tech in the next generation’s standard models, and finding a cheaper way to make the A17 chip for the iPhone 16 and iPhone 16 Plus in 2024 would make a lot of sense.
Either way, it looks like customers will be paying more for the iPhone 15 Pro and Pro Max this year, regardless of any potential midcycle production cost savings. In return, buyers can expect an updated super thin bezel design, improved cameras and a new, customizable Action Button, while the whole range will move to USB-C.
Will it be enough to tempt upgraders? Leakers and analysts disagree, with one prominent leaker calling the iPhone 15 range “too mediocre of an upgrade,” while analysts expect record sales. How Apple’s famously loyal fans react remains to be seen.
06/26 Update: Two of the biggest upgrades of the iPhone 15 Pro and Pro Max were further rubber-stamped today after a new case leak from long-time industry insiderMajin Bu.
Bu has an excellent track record, and the video of an iPhone 15 Pro Max case mold shows both the bigger rear camera cutouts for their larger camera sensors and the smaller cutout for a customizable Action Button that will replace the outgoing mute switch.
Maijin Bu
The Action button will be exclusive to iPhone 15 Pro and Pro Max models and uses a solid-state pressure-sensitive sensor to recognize input, similar to the click technology long seen in MacBook laptops. This should increase both durability and water resistance.
As for the cameras, the headline news is exclusive to the iPhone 15 Pro Max, which will be the first iPhone to come with a periscopic optical zoom lens. Yes, Apple used a different primary camera sensor in the iPhone 12 Pro Max and iPhone 12 Pro, but it had no discernable difference in image quality.
This year that will be different, with the periscope lens potentially opening up a wide gap in zoom camera performance in favor of the iPhone 15 Pro Max. Certainly, when the tech has been used by rivals, such as Samsung’s Galaxy S23 Ultra, the zoom performance shot ahead of iPhones.
Consequently, whereas Pro Max models have typically offered the same feature set at a larger size and with a bigger battery than their Pro equivalents, in 2023 we can expect the iPhone 15 Pro Max to widen the gap.
That said, this difference may only last one year, however, with leaks already claiming that Apple willincrease the display size of the iPhone 16 Proin 2024 from 6.1-inch to 6.3-inches, enough that it can house a periscope zoom lens as well. Shutterbugs beware.
Wind turbines are seen on a rural road off of Interstate 20, Wednesday, July 29, 2020, near Sweetwater, Texas.
Texas businesses and utilities in danger of running short on electricity will have to pay big money to shore up their reserves.
The cost to acquire advance power for 4 p.m. Monday — when demand begins to spike and solar production starts to diminish — hit nearly 50 times its usual price on Sunday, according to the Electric Reliability Council of Texas (ERCOT).
ERCOT expects demand to peak Monday afternoon at just shy of 83,000 megawatts — about 3 percent higher than last year’s all-time records.
The grid has just under 6,000 megawatts in reserve capacity, according to ERCOT. When afternoon comes, those numbers can spike even further, according to analysis from BloombergNEF.
Last Tuesday afternoon, ERCOT averaged over $4,000 per megawatt hour in real-time trading — more than double the day-ahead prices.
That’s nearly 100 times what prices were the previous week, before the heat wave began.
The state agency “likely” paid power plants a billion dollars last Tuesday alone, BNEF found.
And power customers — largely utilities and big industrial concerns — paid $1.7 billion that same day.
That price hike was supply as much as demand. While the state’s steadily increasing solar supply has helped offset the record load on ERCOT’s grid, West Texas wind turbines — becalmed by the colossal mass of still, hot air hanging over Texas and Mexico — have been underproducing.
Late Tuesday afternoon, as grid load peaked, the Texas wind fleet was unusually sluggish — and was producing about a third less power than on an equivalent day in 2019, even though the state had fewer windmills then.
The worst may lie ahead.
“Peak demand days [in Texas] historically happen in July and August — meaning this past week could be a preview,” the BNEF authors noted.
With the news this month that the housing market hit a milestone by showing the first year-over-year price decline in recent memory, homeowners who’d considered finally selling their home this year are finding themselves discouraged yet again.
What happened, they might wonder, to the not-so-distant glory days of frantic bidding wars and over-ask offers? Plenty of frustrated owners seem worried that the window for a fast and lucrative home sale might be shutting fast.
But here’s the reality: The U.S. housing market is no monolith. Although it’s true that many of the hottest markets of the past few years have seen prices fall in the wake of higher mortgage interest rates that broadly dampened home shoppers’ buying power, there are still cities where buyers continue to snatch up homes quickly and where sellers are getting their full asking price—or more.
This is why the Realtor.com® data team dug in to find the U.S. real estate markets that most favor sellers. (Sorry, buyers!)
The best places for sellers generally have persistently low housing inventory, strong demand from buyers, and often—but not always—lower prices that have room to swell. These are generally affordable metropolitan areas in the Northeast with a few in the Midwest.
Three of the metros on our list—Hartford, CT, Worcester, MA, and Providence, RI—are so close, you could tour homes in all of them in a single day. Our ranking also has one spot in the South and a somewhat bizarre outlier in California—more on that later.
To figure out if an area is a buyer’s or seller’s market, Pamela Ermen likes to track the change in the number of closed sales per month, compared with the change in the number of new listings per month.
“When sales are going up and inventory is going down, that’s a real seller’s market,” says Ermen, a Virginia Beach–based Realtor® at Re/Max and a speaker and coach at Real Estate Guidance.
Still, sellers who focus solely on low inventory can wrongly conclude that they can list their home at a higher price than an agent might advise. That can lead to their property languishing on the market not receiving strong offers. Meanwhile, buyers who focus only on the number of sales going down might wrongly think there’s less competition. That might result in heartache when they find out the hard way that many homes are still getting multiple offers.
To find true seller-friendly places, the Realtor.com data team looked at the May 2023 listing data for the 100 largest metropolitan areas. Then we ranked each based on the number of days that the median listing is on the market, combined with the portion of listings that have had the price reduced. These metrics tell us where homes are selling faster than average and with fewer sellers having to reduce their price to make the sale.
We selected just one metro area per state to ensure geographical diversity. (Metros include the main city and surrounding towns, suburbs, and smaller urban areas.)
Here’s where sellers can expect the market to be most tilted in their favor this summer.
A house currently on the market for $174.9K in Rochester, NY
(Realtor.com)
Median list price: $265,000
Median days on the market: 13
Listings with a price reduction: 1 in 17
Rochester, on the western edge of New York along the southern shore of Lake Ontario, not only is at the top of our seller’s saviors list—it’s also in a class of its own. Rochester had both the lowest number of days on the market and the lowest portion of listings with a price reduction. But this is nothing new for the so-called Flower City.
These affordable homes have made the area appealing to locals, out-of-towners, and investors.
“If you’re priced right in our market, you can expect to still sell in about one week,” says Jenna May, a local real estate agent at Keller Williams Realty.
When the market was at its pandemic peak in 2022, and even before anyone had heard of COVID-19, Rochester was still leading the nation in the low number of days on the market. Demand here for homes is high and seems destined to stay that way.
“There are people who are offering $80,000 over listing price and not getting the home,” says May. “It’s that competitive.”
A house currently on the market for $355K in Hartford, CT
(Realtor.com)
Median list price: $424,925
Median days on the market: 19
Listings with a price reduction: 1 in 14
The capital city of Connecticut is also no stranger to the Realtor.com list of the nation’s hottest real estate markets. Hartford is the largest population hub in the state, with 1.2 million residents.
It also boasts home prices that are about 5% below the national median.
“The Northeast has been well undervalued compared with other markets—and not just for years, but for decades,” says Lisa Barrall-Matt, a senior broker at Berkshire Hathaway in West Hartford.
Homes in the Hartford area have been priced $100,000 less than comparable homes in other markets, Barrall-Matt says, for so long that she began to take it for granted.
Now, she’s feeling vindicated: “I used to say, ‘Why aren’t prices higher?’ Now I’m saying, ‘Where’s the ceiling?'”
A house currently on the market for $499K in Portland, ME
(Realtor.com)
Median list price: $622,500
Median days on the market: 24
Listings with a price reduction: 1 in 13
Portland became a popular pandemic destination for Northeasterners looking for a scenic, coastal city with some great restaurants, entertainment, and a brewery scene. The area has a rich history, having a Native American presence dating more than 10,000 years before becoming an early Colonial settlement.
The above-average prices in this artsy city on Casco Bay aren’t keeping sellers from enjoying quick sales. In fact, few listings are getting marked down. The demand for housing here is just so strong. Portland has been featured on our list of the best places to retire in 2022, and it has one of the last year’s hottest neighborhoods: Windham, just on the northwestern edge of Portland proper.
Prices in Portland have grown significantly faster during the pandemic—from May 2019 to now—than they did in most of the country. Where prices rose about 40% nationally, prices in Portland have grown by about 62%. Just since this time last year, prices rose 17%.
A house currently on the market for $380K in Worcester, MA
(Realtor.com)
Median list price: $517,450
Median days on the market: 19
Listings with a price reduction: 1 in 10
Worcester, about 40 miles west of Boston, was nicknamed the “Heart of the Commonwealth” because of its central location in Massachusetts.
This medium-sized metro has a name that’s fun to say, like “rooster” but with a W. But it simply doesn’t have enough homes to match the high interest from potential buyers, according to Nick McNeil, a local Realtor with the Lux Group.
“The amount of demand and the absolute lack of inventory is nuts,” he says. “And there’s not much room for new construction in this area, with tight regulations on what can be built.”
Until there’s some kind of change in the supply and demand dynamic in the area, McNeil says, it’s going to be hard for buyers, and relatively easy for sellers—as long as they’re not also trying to buy.
“The best situation you can be in is if you can sell now,” he says.
A house currently on the market for $549K in Allentown, PA
(Realtor.com)
Median list price: $384,250
Median days on the market: 25
Listings with a price reduction: 1 in 10
Amid the rolling hills of Eastern Pennsylvania’s Lehigh Valley, about 60 miles northwest of Philadelphia, Allentown has a few things going for sellers right now. The portion of homes with a price reduction is about half the national average, and homes are selling about 40% faster.
Like some other places on this list, the homes in this historic steel town are priced below the national average. But local incomes are a bit higher than average, offering buyers more affordability. That’s helping the real estate market to remain competitive as buyers seek out deals.
Allentown offers a mix of urban, suburban, and rural lifestyles, making it broadly attractive for buyers.
What’s especially notable about the area is the price growth over the past several years. Allentown metro prices have risen by 78% since before the pandemic, ahead of all the other places on this list.
A condo currently on the market for $225K in Milwaukee, WI
(Realtor.com)
Median list price: $374,950
Median days on the market: 29
Listings with a price reduction: 1 in 11
Perched on the western shore of Lake Michigan in southeastern Wisconsin, Milwaukee is known for its breweries, including Miller and Pabst. It’s also where Harley-Davidson was founded. And it’s been a staple of housing affordability for some time.
However, prices have been rising in Milwaukee’s metro area: They rose by around 11% compared with this time last year.
The median number of days on the market is below the average now, just like it was before the pandemic. The same goes for the portion of listings with a price reduction. This is all very good news for home sellers hoping for a quick, profitable sale.
A new construction home currently on the market for $400K in Virginia Beach, VA
(Realtor.com)
Median list price: $386,973
Median days on the market: 29
Listings with a price reduction: 1 in 9
The Virginia Beach metro area, a popular vacation spot for beach, maritime history, and seafood lovers, is another place where incomes are higher than average and home prices are lower.
Last year, sellers could count on getting multiple offers, usually leading to potential buyers bidding up the price, says Virginia Beach–based Realtor Ermen. Now, it’s not as easy to figure out that pricing sweet spot. If the home is listed too high, that’s when there’s eventually pressure to reduce the price.
In the month of May, even with a low number of price reductions, Erman says, “90% of price reductions were made before the listing hit the average time on market.”
That indicates sellers are getting antsy, and probably would have been better off pricing the home lower to begin with. But homes that are priced to sell are still moving briskly.
A house currently on the market for $1.3M in San Jose, CA
(Realtor.com)
Median list price: $1,530,000
Median days on the market: 25
Listings with a price reduction: 1 in 9
San Jose is the oddball on this list.
Nestled in the heart of Silicon Valley, it is one of the most expensive real estate markets in the nation. Homes in this San Francisco Bay Area hot spot cost more than triple the national average, which means real estate attracts a very specific buyer.
Because San Jose is a global technology hub, its population is very diverse, and not just racially or ethnically. Roughly 40% of residents were born outside of the U.S., according to the U.S. Census Bureau. Most significantly, many residents have tons of money to spend, whether they’re high-salaried tech employees or they have had an entrepreneurial startup windfall.
Local real estate agents will tell you that San Jose is simply insulated from many of the market dynamics because the clientele is so wealthy. If they’re making an all-cash purchase, they don’t have to worry about higher mortgage rates. And that’s a big boon for sellers.
A condo currently on the market for $450K in Providence, RI
(Realtor.com)
Median list price: $539,950
Median days on the market: 31
Listings with a price reduction: 1 in 10
Providence, home to Brown University and the Rhode Island School of Design, is a bustling town filled with older homes. About 50 miles southwest of Boston, it’s one of the medium-sized, Northeastern metros on our list that are enjoying especially strong housing markets right now.
Providence prices are significantly above the national average, but compared with nearby Boston, where the median list price is north of $850,000, Providence is a downright bargain.
Plus, it’s got a lot going for it. It boasts beautiful scenery along the Seekonk River, a thriving arts scene, and good jobs. The headquarters for CVS is located in nearby Woonsocket.
A house currently on the market for $150K in Toledo, OH
(Realtor.com)
Median list price: $229,950
Median days on the market: 31
Listings with a price reduction: 1 in 9
Home prices in this Rust Belt city, which has struggled in more recent years, are still dramatically lower than the national average—about 45% less expensive. And with the focus of buyers on affordability, it’s no wonder that Toledo has taken off.
In the past year, median list prices in Toledo have risen by 25% (10% per square foot), which is quite a bit higher than before the pandemic.
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2924175530478188)
