We know that stocks are up around 40% year on year. But, whether much of that is actual growth or government inflation to “paper-over” a second Depression is a worthwhile conversation.
One thing you do need – regardless of your station in life – is a roof over your head. Usefully, the Case-Shiller/S&P Housing report is just out:
The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 13.2% annual gain in March, up from 12.0% in the previous month. The 10-City Composite annual increase came in at 12.8%, up from 11.7% in the previous month. The 20-City Composite posted a 13.3% year-over-year gain, up from 12.0% in the previous month.
Phoenix, San Diego, and Seattle reported the highest year-over-year gains among the 20 cities in March. Phoenix led the way with a 20.0% year-over-year price increase, followed by San Diego with a 19.1% increase and Seattle with a 18.3% increase. All 20 cities reported higher price increases in the year ending March 2021 versus the year ending February 2021.”
We wryly note this is against a 27% increase in M2 and an even more massive hike in M1. Of course, housing will go up…
Before seasonal adjustment, the U.S. National Index posted a 2.0% month-over-month increase, while the 10-City and 20-City Composites both posted increases of 2.0% and 2.2% respectively in March. After seasonal adjustment, the U.S. National Index posted a month-over-month increase of 1.5%, and the 10-City and 20-City Composites both posted increases of 1.4% and 1.6% respectively. In March, all 20 cities reported increases before and after seasonal adjustments.
“Housing prices continued to rise robustly in March 2021,” says Craig J. Lazzara, Managing Director and Global Head of Index Investment Strategy at S&P DJI. “The National Composite Index marked its tenth consecutive month of accelerating prices with a 13.2% gain from year-ago levels, up from 12.0% in February. This acceleration is also reflected in the 10- and 20-City Composites (up 12.8% and 13.3%, respectively). The market’s strength is broadly-based: all 20 cities rose, and all 20 gained more in the 12 months ended in March than they had gained in the 12 months ended in February. “
What matters most to us are the absolute sales prices:
Two things of note: One is the impact of CV-19 on housing prices was (by this chart) barely noticeable. Second is this reflects March 2021 data. Which is useful for home sellers who put property into the market in January or February. Point being that there is a lot of lag-time in the data. At the end of June we will get April Data and sales today won’t be reflected until the end of July…
Click here for this morning’s Gullible Coinsters, Housing Awaits, Side of Woo-Woo.