Instant Reaction: Q2 GDP

The following is NAR Chief Economist Lawrence Yun’s reaction to this morning’s U.S. Commerce Department report on Q2 GDP:

“The second quarter GDP growth rate was still unimpressive despite doubling the pace from the first quarter. The latest 2.6% expansion is still below the long-term historical average of 3.1% and what President Trump had campaigned on. The missing ingredient was a pullback in new home construction. Residential investment fell 6.8%. Other areas were all decent, though not spectacular. Consumer and business spending rose at around 3%. Exports rose 4.1% while imports gained 2.1%. More international trade will mean more real estate purchases by foreigners. America faces a housing shortage and we need more construction. If this can simply be done, the economy will move up to the fast track.”