Case-Shiller/S&P Housing: Squeaks Out a Win

Not by a lot, though, as we shall see:  First, though, the good news.

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 3.8% annual gain in December, up from 3.5% in the previous month. The 10-City Composite annual increase came in at 2.4%, up from 2.0% in the previous month. The 20-City Composite posted a 2.9% year-over-year gain, up from 2.5% in the previous month.
Phoenix, Charlotte and Tampa reported the highest year-over-year gains among the 20 cities. In December, Phoenix led the way with a 6.5% year-over-year price increase, followed by Charlotte with a 5.3% increase and Tampa with a 5.2% increase. Twelve of the 20 cities reported greater price increases in the year ending December 2019 versus the year ending November 2019.  

The problem, though is when we look at the December data portion of the report:

The National Index posted a month-over-month increase of 0.1%, while the 10-City Composite posted a 0.1% increase and the 20-City Composite did not post any gains before seasonal adjustment in December. After seasonal adjustment, the National Index posted a month-over-month increase of 0.5%, while the 10-City and 20-City Composites both posted 0.4% increases. In December, 10 of 20 cities reported increases before seasonal adjustment while 19 of 20 cities reported increases after seasonal adjustment.

I assume you remember my teachings on “seasonal adjustments?”  They’re sort of like crack – addictive.  And mostly, not too useful except they sure make you feel good…

OK, so the price picture?

As always, three keys to keep in mind here:

  1. These are raw prices.  Remember there’s a cost of sales that is not included.
  2. Second is inflation.  Go to the Minneapolis Fed website and plug in the inflation adjusting numbers and the gains will moderate.  Still, buying a home using leverage intelligently is a good way to get ahead and move up the social conveyor.

New is our #3 bit of advice:  Get a home big enough to actually enjoy any coming “isolations” or “lockdowns” in.

After the numbers, Dow futures were up 125…dead cat bounce, anyone?

More on the ‘morrow.

3 thoughts on “Case-Shiller/S&P Housing: Squeaks Out a Win”

  1. My company is canceling sales summits in APAC and EMEA. Taking actions to reduce hugging and hand shaking at the US summit. I expect this sort of thing to continue and spread. That’s a lot of money staying put for the foreseeable future.

    • I just heard on the radio that there is a travel ban for south korea.. and that military was going to start drills..
      On a positive note.. my cardboard box project is going good.. my glue must have gotten frozen.. so I will have to get more glue.. I did find a great box to use for the cup holder and I think that is awesome..
      I was scanning the box crusher at Walmart.. the manager and I were looking for good candidates and he is getting more excited than I am over how it is turning out.. I did go and buy some wheels though.. the ones I made at the cabinet shop.. didn’t have wheels just some cheap casters.. so this is going to be top notch.. I am adding a lot more than I did on the ones I made at the cabinet shop to.. I am putting in a tower.. a cooler the bar box and wine bottle holders.. instead of putting an expensive tap on the tower.. I decided to put the cheap one.. I actually have a few of the expensive taps.. but the whole idea of the project is to show that quality stuff can be made cheaply for someone that is just starting out..

      this one I will give away.. it is just the show on how to do it.. this will be similar to the lemon aid stand that I built the kids a few years ago.. but a lot lighter..
      with more cadilac options..
      I am still divided on whether or not I should put a door or just a cover over the cooler.. either would be nice.. I will cut the cardboard ship lap so it looks like a waynescoating base.. I will cut that by using a piece of angle iron I have sitting around from another project..

      George I totally plan on sending you pictures of the finished project …

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