Generated from the St Louis Fed data and going back to 1988 when I became a voter. It’s interesting to see how when mortgage rates come down, median house prices rise. So what’s happening post 2020? The interest rise should push median prices lower but it’s not budging. Could it be Boomer related? I don’t know why it’s happening but this I know: young people are pissed because they can’t afford to buy a house. ...
From The NY Times email newsletter. On Friday, the National Association of Realtors, the industry group that has enforced the rules that led to the 6 percent commission, agreed to change its behavior as part of an agreement to settle several lawsuits. The settlement is important in its own right. Americans now spend about $100 billion a year on commissions. That number will probably decline by between $20 billion and $50 billion, Steve Brobeck, the former head of the Consumer Federation of America, told my colleague Debra Kamin. ...
The real estate market is signaling a possible opportunity. Is it time to buy?
Revisiting egg prices and economic Insights. Fed Reserve data shows hope for lower prices ahead. Real estate challenges but stock market optimism. 📈🥚
I’ve written about the price appreciation trap we’re in for Real Estate and how the Real Estate Crash is Delayed, but make no mistake it’s coming
A few years ago I read the book “The Candy Bombers.” It was about the logistics chain of the Berlin Airlift and how the United States rebuilt war-torn Germany after World War II. There’s an interesting part in the book about how the US needs to stop the black market and skyrocketing costs in Berlin. A general said (paraphrased), once we see eggs sold outside in the market place then we know we’ve broken the black market. For him, it was a basic food item that was a leading indicator that things were getting better. I’d never dream that all those years later I’d be watching an egg chart from US Federal Reserve data! ...
My friend at Paper Economy is testing out his new data visualization engine and he pulled together a scary chart of Year over Year house prices in Phoenix, Arizona. Can you believe it? We are below 2000 prices? This is truly a frightening chart and I suspect that real estate prices could go even lower in Arizona, and the rest of the country for that matter, if people continue to get laid off. This would confirm my observation from earlier this year about real estate and equity prices having further to fall. ...
As I wrote in my Feb 2009 post “Where’s the Market Bottom”, I believe the real estate and equity markets have more downside coming. Now someone’s IYR model, is setting up for a possible test of its March lows. Hehehe. I built a fast IYR model myself using Stock Neuromaster to see if I can match his “box” model. My model show a short signal generated on 4/1/09 for 4/2′s open, which remains short this morning. ...