Home Is Where The Inflation Is

So what can we learn from today's existing home sales numbers?   View in browser   October 21, 2021 advertisement   Why are 9 Billionaires buying this crypto?

Today's Top Stories From the Breitbart News Desk So what can we learn from today's existing home sales numbers? The first thing is that the demand for single-family homes is still enormous, despite more than a year of booming sales. Existing home sales were up seven percent compared with a year earlier. The median price of a previously-owned home was 13.3 percent higher than a year ago It's worth remembering that this is an abnormal return on an investment in a house. Over time, housing tracks the growth of the economy and the rise in prices generally. So double-digit gains are not sustainable and typically are a sign that people have decided they are underinvested in housing. To put it another way, when you have double-digit gains in home prices followed by double-digit gains a year later, which is what we're seeing now, you should expect the housing market to start to slow down. And, indeed, that's what is happening. The year-over-year price gains are falling each month. That's a sign of healthy stabilization. One thing that has been largely overlooked in the better-than-expected September home sales is the connection to the worse-than-expected starts number. Normally, rising sales in existing home sales should feed into rising starts. Builders see a high level of demand for houses, and so they build more. But we're living in an age of supply chain crisis, and so builders are reluctant to pay up for materials and labor. That matters for the economy. It means that rising home prices and rising home sales do not necessarily translate into economic growth. Selling a home that was built 10 years ago doesn't add to GDP. Building a home does. Supply chain disruptions slow growth. – Alex Marlow & John Carney Breitbart News Network

TOP STORY

Democrats Press Transportation Secretary Buttigieg: 'Take Decisive Action' on Supply Chain Crisis

Two California Democrat Senators have sent a letter to Secretary of Transportation Pete Buttigieg asking that his agency "take decisive action to address supply chain bottlenecks in California and across the country." The press release about Sens. Dianne Feinstein and Alex Padilla's letter links the crisis to the need to pass President Joe Biden's "so-called" infrastructure bill that includes day care and climate change provisions "to ensure supply chains are more resilient to interruptions." "They also noted that the backlog not only has the potential to delay critical deliveries for businesses and consumers, but also may have played a role in the recent oil spill off the coast of Orange County as container ships are forced to anchor off the coast amid delays," the press release about the letter said. [Click here for more]

IN OTHER STORIES...

Bidenflation and the K-Shaped Housing Market: Million Dollar Home Sales Still Soaring, First Time Buyers Sinking

Sales of the priciest homes were strong in September and the share of sales to first-time buyers fell, highlighting increasing inequality in the Biden era housing market. The median existing-home price for all housing types in September was $352,800, a 13.3 percent increase from a year ago, data released Thursday by the National Association of Realtors showed. Prices were... [Click here for more]

Inflation Expectations Reach Highest Level in More Than a Decade

A key measure of the market's inflation expectations has soared in recent days, cementing worries that the Federal Reserve will not be able to bring the rate of rising prices back down toward its long-term target of two percent. As of Wednesday, the gauge known as the 10-year break-even rate implied that bond market investors expect that the consumer-price index will rise by an annual average of 2.62 over the next... [Click here for more]

Fed Bans Senior Officials from Owning Individual Stocks

The Federal Reserve on Thursday said it was banning senior officials from purchasing individual stocks or bonds and requiring investment activities to be limited to broad-based products such as mutual funds. The move comes after disclosures of trading activity last month that triggered the resignation of two federal reserve presidents on the same day, an unprecedented loss of senior leadership for... [Click here for more]

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