Housing Inflation Rocks 19.7%

by

Wow!  Just out from Case-Shiller/S&P:

YEAR-OVER-YEAR
The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 19.7% annual gain in July, up from 18.7% in the previous month. The 10-City Composite annual increase came in at 19.1%, up from 18.5% in the previous month.

The 20-City Composite posted a 19.9% year-over-year gain, up from 19.1% in the previous month. Phoenix, San Diego, and Seattle reported the highest year-over-year gains among the 20 cities in July. Phoenix led the way with a 32.4% year-over-year price increase, followed by San Diego with a 27.8% increase and Seattle with a 25.5% increase. Seventeen of the 20 cities reported higher price increases
in the year ending July 2021 versus the year ending June 2021.

This sure looks like the non-linear part of a blow-off to us!

In our view, this is a very clear sign of incipient inflation.  And this is what’s driving the tension between the D.C. ’tilians and the balance-sheet Fed.

We think the Fed is favoring sound monetary policy but the WH is getting greedy, pushy, and mean because Joe Blow has hooched the pooch for 2022 and he needs a scapegoat – bad!

Anyway, back to point:

“ANALYSIS
“July 2021 is the fourth consecutive month in which the growth rate of housing prices set a record, says Craig J. Lazzara, Managing Director and Global Head of Index Investment Strategy at S&P DJI. “The National Composite Index marked its fourteenth consecutive month of accelerating prices with a 19.7% gain from year-ago levels, up from 18.7% in June and 16.9% in May. This acceleration is also reflected in the 10- and 20-City Composites (up 19.1% and 19.9%, respectively). The last several months have been extraordinary not only in the level of price gains, but in the consistency of gains across the country. In July, all 20 cities rose, and 17 gained more in the 12 months ended in July than they had gained in the 12 months ended in June. Home prices in 19 of our 20 cities now stand at all-time highs, with the sole outlier (Chicago) only 0.3% below its 2006 peak. The National Composite, as well as the
10- and 20-City indices, are likewise at their all-time highs…”

So our set-up today is Responsible Fed (who’d have thought?) trying to prevent money-stuffing via MMT which will put the remains of America on track for Caracas.

Can you – in your worst nightmares – imagine AOC as a Fed Governor?  Bar open yet?

More 0n the subscriber side tomorrow.

Write when it makes sense,

George@Ure.net

20 thoughts on “Housing Inflation Rocks 19.7%”

  1. It’s interesting how I read these many articles throughout the ‘media’, especially in propaganda rags like MarketWatch about ‘potential’ inflation or ‘temporary’ inflation. Well, George has done a good turn in outing the inflation in Real Estate, but I am afraid we are at the beginning of a long and dirty road! Nothing is now ‘potential’ – it’s here and now and exists across multiple sectors. It’s also not in any way temporary. In fact, the potential here is for something much more severe than anything we saw in the 70’s and for a decade or more until America takes control of its supply destiny – very unlikely as we don’t have the production skills anymore (that’s a post or two in itself).

    Food prices are definitely up hugely – if you like to eat real food and not processed or junk food. Oh well, hang on to your hats ladies and gentlemen, the wind is starting to blow hard and steady.

    • “America takes control of its supply destiny ”

      Sadly.. the reports I have read all say the same thing.. it would take America five to ten years to retool.. and start manufacturing.. call a service line.. your still going to talk to someone in another country..You also have to take into account.. the high paying jobs are being dealt out to people that are not accustomed to our ways..
      one family I know.. the grandpa and grandma mom dad aunts uncles kids grandkids and everyone lives in one house.. sort of a family commune.. all the income comes in and is managed by the parents..
      we are a consumption nation.. prices will continue up.. to shut america down was easy and shown how easy over covid.. then on top of it.. trained workers are retiring.. training.. usually came from the more experienced tool and die workers..
      schools like books teach you the basics.. I have read thousands of books on surgeries.. as an example.. but I have never or will ever manage a scalpel.. the same with future physicians.. they get the basics from the books then the hands on from surgeons working

      • And therein lies one of the main obstacles to reindustrialization – lack of practitioners to train the newbies. The individuals who were on the front lines in the peak years of US industrial production are gone.
        But you say, we’ll just bring in some new people from other countries. Sorry, but we aren’t getting the best and the brightest from the offshore competition. We mostly get brothers-in-law with phony degrees and no hands-on experience, ’cause being a worker bee is below their station.
        Companies in the heyday tolerated the union representation of skilled workers, because the unions generally handled getting apprentices trained to the point where they could actually perform work. The days of union apprentice classes seems to be gone as well.
        Today companies treat skilled workers including welders, machinists, electricians, assemblers and technical professionals like baseball cards for trading. The problem is, the pool of cards is getting rather thin. I spend a lot of waking hours looking over technical comments made by offshore-trained “engineers”. In general, they have not been properly mentored, and are boneheads to deal with when they they go off in the ditch with absurd technical analysis. American workers, both blue collar and white collar, are bullied and treated with disrespect by their MBA masters.

      • “Sorry, but we aren’t getting the best and the brightest from the offshore competition. We mostly get brothers-in-law with phony degrees and no hands-on experience, ”

        That is so true N____LOL…
        I had to train in a four year grad for nursing.. they gave me her to take down the wings and show her the ropes.. after fifteen minutes she says.. I didn’t get into this to do this.. I said.. so what did you think you were going to do.. sit in an office with books all around me.. OOPS you just threw out a hundred grand for nothing LOL..she quit.. fifteen minutes in the job..
        When I left the plant.. ( they wrote me up because I took four hours off and they pushed the points from twelve years earlier for jury duty..) they had to hire six people to fill my spot.. the ex boss told my new boss when they ran into each other.. that if they had realized how hard I worked they wouldn’t have ever written me up for that..
        if there isnt’ any need then why work for it..
        I tried to impress them without having a paper on the wall.. they had a thing.. go out to lunch at the country club with the boss once a month if you could save the company ten grand or more a year with a suggestion.. I went every month.. for twelve years.. what I failed to realize is I needed to join the country club or the skeet shooting club..

    • “Food prices are definitely up hugely”

      The $1.25/lb hot dogs jumped 3 more cents. From $1.00 to $1.28 in less than a year. There is alternate, the 12 oz package for $1.00.

      But think of the $300.00 per month per kid unearned income checks.

      If we don’t pay more, they can’t afford their kids. GM too. If we don’t pay more, they can’t build cars nobody wants.

      “Add more water to the soup!”

      • “Inflation is transitory”

        That’s also true.

        Houses were increasing in price for 100 years, to 2012. Then the transitory inflation ended. But nobody wanted the inflation to end. So a new round of ‘transitory inflation’ was unleashed. Now house values are triple from 2012. Yeah!

      • “The $1.25/lb hot dogs jumped 3 more cents. From $1.00 to $1.28 in less than a year. ”

        and that is a cheap hot dog to…
        https://www.walmart.com/browse/food/hot-dogs/976759_9569500_2941132_1001429
        the ball park dog.. almost seven bucks.. One reason why when I had the chance to get pork butts cheaper than what it cost to raise them I grabbed a few.. I will make my own dogs and bologna.. the other thing you will notice is slicing.. they are making the slices a whole lot thinner as well.. ( deli slice )
        at this point it is like it was during the Reagan recession of the eighties and is definitely cheaper to make your own than to buy them… and you you have total control of what the fillers are.. https://www.treehugger.com/anatomy-hot-dog-whats-inside-4858328
        I use potatoes.. and when I do go out and get dogs I usually go to my favorite meat processor.. I can watch them make the dogs completely..
        Oh I love this story.. LOL when I worked grocery store.. I was stocking shelves and one night it was close to break time and I walked back to the meat coolers.. and gazed at what was in them.. what is that I asked.. the meat manager said.. oh that is pork Azzholes.. what.. yup we sell a ton of them this time of month.. a little later I had gotten a pastry and a drink headed up to the cashier and a Vietnamese guy goes by by cart full of them.. loaf of bread mayonnaise ketchup onions lettuce etc.. the guy walking with me for break asked.. hey take a look.. what is that.. I not missing a beat said.. sheesh.. haven’t you ever seen anyone have an azzhole sandwhich LOL….
        talk about price increases.. go to your favorite fast food place.. look at the four dollar deal meal.. LOL its now twelve bucks if you get a drink..
        the breakfast burrito.. ( also note they cut the amount of filling in it as well..) came out to ten bucks this morning with a cup of jo…

      • “and that is a cheap hot dog to…”

        You’re right. Cheapest ones. I feed those hot dogs to the yard animals. The very animals I may have to eat later. LOL

        Walmart has the 5.5 oz can of cat food for .33 cent. Cat food is slightly cheaper than hot dogs… but the dogs have more fat.

  2. i spoke with the “book of changes” changes this morning…… toss my own three6 times. interesting read for th3 next E0 days. $ mii.

    a Chinese invention. didnt win Jesus’s toga. but things things are looking up.

  3. Housing rocks up…
    Well I know a few people that have bought houses.. one gent was able to get almost five times the money for his.. he sold it and bought a house way out in the sticks..decided it was best to do it before interests takes a hike upwards..

  4. as fate would have it,

    if anyone interested, this site translates your own person 3 coins for you. i would never allow anyone or anything to toss my coins for me. this is pretty good translator.

    dont worry its only witchcraft if you are a witch. blowing out candles on a birthday cake, and making a wish? is also witch craft if you are a witch. i know quite a few witches come to think of it.

    at the link:

    https://www.ifate.com/i-ching.html

    fortune favors the wise. less talk and more action Angels,

    • Andy, I tried it
      “will the US military be involved in a coup to save America?”
      I got line #30 luminosity
      This hexagram is a sign of good things. The path is clear and success is yours. A sense of inner radiance is the source of this good news. From a bright inner nature stem wondrous outer circumstances in your life. The brightness lights up the night sky like a sacred flame. Stay aware of your purpose. You will make great strides toward your goals. Take new actions. Health and prosperity are indicated here.
      Changing line to #14 Plenty

      I used nickels and did the toss from a glass as a shaker
      Next try it will be a more personal question, about things in my smaller sphere of influence,,, not incovidence, well anyway we will see

      there will be nay sayers for a coup, we are attempting a US Constitutional home cure with the audits. Will the legislatures and AG in each state step up and do their job? That must be pursued first. Then a demand from the states for a new election by the US House, each state will get one vote each, it is in the US Constitution.
      What will Nancy do??? Refuse? But if the patient has cancer, can he/she operate on his/her self? Going to need a MASH unit.
      Aiding and abetting the enemy is WHAT? A free ride to GITMO
      It took Patriots to free U.S. from the Corporation in 1776. We lost it with the Feral Reserve Act, treasonous traitors have no morals, are easy to buy or blackmail. CONgress
      The British Royalty/Throne/Monarch is a Corporation but I do not have their legal corp. name

    • too much fun ! I asked “invariable, kind nature of the universe to please provide insight to my breaking out of prison planet Earth”. I asked the same question of my higher self 2 weeks ago during a QHHT Session.
      The insight received via manual toss – “Hexagram is reminder not to break under the weight. Also about great inner test. You may be in some danger for short time. Only thru letting go of the old and embracing the new can success be attained. A gentle strength is required.’

      Too cool – although would caution about use of on-line I-Ching – dont want hurry with this kinda thing, after a meal or early morning – when nrg is all congested in Ure stomach.
      Been years since I broke out my bag of cassia tora seeds and the Book of Changes. Balance is the fundamental principle of the I-Ching. Guidance made more difficult without being able to examine the elements of the hexagram and the relationship of the lines to one another – but still fun and seemingly tuned in ?! Thanx

      • “too much fun ! I asked “invariable, kind nature of the universe to please provide insight to my breaking out of prison planet Earth”.I broke out my bag of cassia tora seeds”

        LOL LOL LOL LOL there was a movie where the father had everyone run to the bathroom.. He was reading his TURD .. it said things were pointing up LOL LOL LOL…
        https://youtu.be/h5Tl94R3YVg
        I couldn’t find the movie.. but hey this one works for what I see is going to happen in the near future LOL no crystal ball needed…

  5. Lets See…. CDS used to synthetically short the real estate market. Govt printing fiat to “buy out ” the defaulted [shorted /upside down] mortgages, and keeping real Housing price discovery out of the market. Thus protecting the Banksters who could continue to force the commoners to pay inflated prices for homes [and the banks could continue selling Jumbo mortgages], protecting their vig.

    This is the point in time where it’s going to all come home to roost. In the continuously inflating model, the prices are just beginning to catch up.

    Crypto Currencies with fixed issuance are deflationary [from the banksters perspective]. What does that deflationary price mean from the bankster perspective? it means the value[ in your pocket] is climbing in fiat terms. I like that. I suspect other commoners holding the asset will like that as well. A vehicle other than real estate that if held over time almost always goes up in price. The difference? If youre smart enough to hold crypto directly [no middle men, no bankster fees,no deposit fees, no interest paid to the banskters on the asset you’re holding. In the case of select crypto’s de minimus transaction fees are all youll pay to unload. You see the BS here right? Up next , the global fiat system as modeled using Jenga blocks. Get ready.

    https://media1.tenor.com/images/5cba41fcf82696aec816fcb93a470ff9/tenor.gif?itemid=12091490

  7. So lets see the tally on China. Top problems of Real Estate, Energy, Water, and Age.

    Real estate may have just been corrected. They are facing rolling blackouts, the new normal for some Chinese.

    Water is next, and lack of workers after that. The shoes are dropping!

    But… don’t get too cocky. The last time we were talking about real estate bubbles in the US, along side inflation and a bloated stock market was… you got it, 2006.

    Wait, what. Yes we saw all three bubbles in 2006, right G? I made my housing choices based on this and sold in 2006, cashing in massive equity while only missing a few points on the upside before the wheels came off in 2008. Like a dummy I also purchased in 2006 and took a couple year bath, but I’m way better off with the property I own to this day. So it was a good move long term. I still owe you a bottle of scotch for that one George. I only deliver in person and I may not make it to Texas any time soon.

    So are we on the edge of disaster? or is this the trembling of the hoofbeats just over the horizon?

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