housing market slowed considerably in the spring, with 5.5%-plus mortgage rates sending many buyers to the sidelines and cooling competition.
This is according to a new report from Redfin ( ), the technology-powered real estate brokerage, which also found that relatively affordable northern metros are most resilient in the event of a recession. (NASDAQ: RDFN) - Popular migration destinations where home prices soared during the pandemic are most likely to see the effects of a housing downturn amplified and home prices decline year over year if the economy goes into a recession. Still-affordable Rust Belt metros like Cleveland and Buffalo are most resilient. Sudhir Sitapati, MD and CEO, Godrej Consumer Products, said that recently the company’s personal wash portfolio could see incremental price increases.Riverside, Boise, Phoenix and Tampa are among the markets where homeowners stand to lose some of the value they gained over the past two years. The price increases in home care and personal care products, of about 25-50% y-o-y, have been higher and have hit household budgets the most. With products from these smaller players missing from the shelves, the slowdown would have been exacerbated.
This is primarily due to their inability to pass on the higher input costs to consumers. The Nielsen IQ FMCG Snapshot Q12022 reveals the exit of small manufacturers has been on the rise during the quarter at 5.3% y-o-y. In the December 2021 quarter, the contraction in total volumes had been smaller at 2.6% y-o-y while the March 2021 quarter has seen volumes grow by 8%.Īdani Wilmar took an average price hike of 30-35% in the edible oil segment and an increase in the range of 15% in the wheat flour and rice during the quarter ended March.
The de-growth in volumes was significantly higher for non-foods at 9.6% y-o-y compared with a contraction of 1.8% y-o-y for food. The double-digit price hikes drove up the growth in the FMCG space by 6% y-o-y in the three months to March helping offset the contraction in volumes to the extent of 4.1% y-o-y. However, Mehta said that a large part of the problem of the input costs had so far been managed by reducing the grammage and that an “immediate price increase is our last resort. Sanjiv Mehta, CEO and MD, Hindustan Unilever, indicated as much, saying some price increases may need to be taken. GST: Automated returns scrutiny set to roll outįMCG players have sought to protect their margins by resorting to price hikes and will likely increase prices further.
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