The recently released Case-Shiller national and 10-city home price indexes hit new highs for July.
Chart Notes
- National and 10-city indexes from Case-Shiller
- The CPI, OER, and Rent measures are from the BLS
- OER is Owners’ Equivalent Rent, the price a homeowner would pay to rent their home, unfurnished, without utilities.
Case-Shiller data was released on Tuesday. But the St. Louis Fed did not have the data posed until Wednesday or Thursday.
I am not sure why the delays on this series but it is frequently late.
Case-Shiller Home Price Index National and Top 10
New Record Highs
- National
- 10-City Composite
- Boston
- Chicago
- Las Vegas
- Miami
- New York
- San Diego
- D.C
Missing from the above list are San Francisco and Denver.
Data is through July and that represents sales from May, June, and July so it’s possible the top set in more cities than shown above.
Housing Related Posts
- September 18: Stronger than Expected Housing Report in August, Especially Completions
- September 19: Existing Home Sales Decline for the 24th Time in 31 Months
- September 22: 21 Million Renter Households Spent Over 30% of their Income on Housing Costs
- September 25: Home Builders Are Sitting on a Lot of Supply they Struggle to Sell
The Fed Predicts an Immaculate Soft Landing
Meanwhile, please note my Hoot of the Day: The Fed Predicts an Immaculate Soft Landing
I review all of the jobs and unemployment data. The Fed predicts a soft landing. I don’t.
tea leaves here on westcoast tell me RE peaked just now…..
Chicago? New York? D.C.?
But I thought everyone was leaving the big blue cities?
I agree with your comment. Many $300,000 / year pension suburban public school district assistant superintendents are staying put in Chicago METRO area.
They are. Landlords are buying the properties to rent. Chicago has over 45,000 illegals. We sold at record highs and moved out of state. We never listed our property for sale. We told a landlord we were going to sell and he made us a record high offer.
But Chicago has 2,746,388 people. Where are there that many houses lying around empty for people to move to? Ditto for NY and DC.
Oh wait it’s 2,746,388 + 45,000 – 2?
Bernanke contracted money flows, yes, he “did it again”. Powell has yet to contract money flows (i.e., force negative rates-of-change).
Artificially low real-rates of interest have forced investors to rebalance into higher-yielding assets, to stoke housing and stock prices.
Suppressed interest rates siphon funds dissipated in financial investment (the transfer of title to goods, properties, or claims thereto), as opposed to real investment, i.e., it represents a surfeit of savings over real-investment outlets. It’s become a rentier economy, i.e., Marxism.
has anyone calculated % devaluation of fiat $dollar thanks to biden/harris
and how about 2024 devaluation??
and coming 2025 estimates(companies ready to raise prices 10-20% again)
I have JUST AT THIS moment Calculated, using a Spreasheet, the COMPOUNDED RATE OF INFLATION since the end of WWII (1944) to a projected end of this year: 488% inflation, using the FED’s OWN 2% objective. $100 in 1944 is now $488.
Yeah, I really hated it when I found a $100 bill from 1944 in my grandfather’s bedside table after he passed. I thought, wow, he could have had so much more fun with that back then than me now.
But then I thought, but I don’t think he missed it much because all of his Social Security payments were indexed each year to inflation (using CPI) so he was no worse off all those decades he received Social Security.
And then I thought, what am I worried about? If he earned the average weekly wage in 1944, and I earn the average weekly wage now, I earn significantly more than the so-called compounded rate of inflation ‘issue’. My grandfather would be a proud American my standard of living is so much better than his.
a good comparison is go to an old city in usa like boston/ny/sf etc…….and compare the cost of a one or two bedroom apartment in 1945 and 1900 in minimum wage work in hours and calories expended to make that dough. today’s costs are much less. due to much easier life to make the rent………
Don’t focus on wages. Include all those things that the government now provides you at no cost to you, like our $35 Trillion National Debt.
just look at GOLD over last 4 yrs. Your welcome
I’m in 55+ mini-resort with park model/RV’s
you buy lot – 40×60 – right now they are $70k to $90k(with concrete done)
older 80’s park model run $130-$150
newer 2000+ are $170-$200+
—-
guy yesterday said since they all pay CASH little reason to discount
We use a Summer Co-Op park membership here in Oregon. $600 a month fixed Lot Rent INCLUDING POWER/WATER/SEWER/CABLE MODEM; we can stay here until we die (we live in Europe part time) and we are in a nearly water-front Property. We are on the RV side.
We also have two park sections: Mobile Homes and our Rolling RV’s. The Mobiles are now selling for $325,000 for a good newer one. Rent is $450 plus utilities.
Across the Bay from us: A CITY OWNED PARK is now $1800 a month, in a PAVED parking lot on a marina. Nice, but exposed to Bay winds and driving rains.
Creeping hyperinflation.
From the Sept. 4th issue of Wine Spectator. These are regular size 750 ml bottles.
Louis Latour – Romanee St.-Vivant 2022 $1,250
Albert Bichot – Clos de Vougeot 2022 $673
Albert Bichot – Latricieres-Chambertin 2022 $770
Faively – Echezeaux en Ourveaux 2022 $495
Louis Latour – Echezeaux 2022 $550
Krug – Brut Champagne 2011 $470
How’s MD-20/20 Red Grape Wine doing these days?
those are downers like opiates……….lived in wine country and saw the depression of the visitors and owners……….
Thank you Fed for creating this wonder bubble where the portion of society who can afford a home continues to shrink month by month. Thank you, Congress, for your massive overreaction to COVID which helped fuel this mega bubble.
There’s simply no telling when a housing recession will arrive, but it’s a near certainty that the Fed & Congress will overreact to keep housing from fall off a cliff.
Housing permabears are so wrong, Wolf being one of the biggest. There’s massive demand for SFHs and not enough being constructed.
Replace “overreact” with “take control”. Which is what Harris wanted all along.
The big question one faces is, will there be deflation or inflation? We’re in the early stages of deflation. But the Fed and government are ready at the trigger to inflate as things worsen. The end game will always be inflation since the government wants to maintain control and that involves printing money. Got gold?
By the way, great article by Norwegian professor Glenn Diesen on the Nordstream destruction. And for those with learning disabilities, yes, it was the US.
https://www.rt.com/news/604776-two-years-nord-stream-attack/
But anyone with a working brain already knew that
Hundreds of billions at 0% from 2008 to 2022 provided by the banks to the wealthy and already wealthy via hedge funds and private equity has meant everything in America is for sale (Sears, Toys R Us etc) and being bought — America will be owned by the top 5000 families who will own 99% of everything very soon — all time highs for stocks, bonds, real estate, company purchases, apartment buildings. This is why everything is expensive in the US and around the world, and no one is talking about this post-2008 “emergency funding,” which will continue to run when interest rates go back down to zero in 2025. We will all be renters and working for minimum wage.
I agree – the feudalization of the middle class.
feudalism has always been the highest and best form of capital creation for the owners. it was always inevitable. never in question imho. figured this out in econ 101 at age eighteen
The prices are the same. The dollars are worth less.
Correct, but you’re not saying much. It’s always relative.
Partially correct.
“The weight of the 1 oz. gold coin is the same. The dollars are worth less.”
The S&P 500 index performed as well if not better than gold over the past five years with less volatility. Like I said, it’s all relative.
I suppose the 29% decline in the S&P during the first nine months of 2022 doesn’t count.
Gold’s biggest decline during the same period was far less than that.
Upward stonk market multiplier effect.
As Florida Storms Worsen, Some in Tampa Bay Wonder: Is Living There Worth It?https://archive.ph/vAJgV
Perhaps the cooling phase we’re in is starting to adversely affect the weather? We need more global warming to counteract it.
Lol! Cooling phase? Got some data to show that?
August was the 15th consecutive world record monthly warm temperature.
https://wmo.int/media/news/record-breaking-temperatures-continue-august
It ain’t rocket science. Don’t live near the water and if you do, have a boat or canoe handy.
Oh no! “Everybody” is leaving Florida!
The Titantic is unsinkable, so we’ll stay on board with our friends.
Rising sea levels will result in several Florida cities being underwater by 2050. Ice caps are also melting and hurricanes/ storms are contributing to the destruction of low-lying coastal areas. It has been predicted that sea levels could rise as much as eight feet by 2100.
Of course they will rise. But 8 feet is the worst case scenario. The best case scenario is 1 foot by 2100. Most likely we will get something in the middle; 3-4 feet.
1 foot submerges 2000 Square miles in Florida
3 feet: 4700 square miles
6 feet: 13,000 square miles (25% of Florida)