Housing: Screaming Prices

by

Up, Up, and Aghast!

“S&P CoreLogic Case-Shiller Index Reports Annual Home Price Gain Of 19.7% In May

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 May, down from 20.6% in the previous month. The 10-City Composite annual increase came in at 19.0%, down from 19.6% in the previous month. The 20-City Composite posted a 20.5% year-over-year gain, down from 21.2% in the previous month.

Tampa, Miami, and Dallas reported the highest year-over-year gains among the 20 cities in May. Tampa led the way with a 36.1% year-over-year price increase, followed by Miami with a 34.0% increase, and Dallas with a 30.8% increase. Four of the 20 cities reported higher price increases in the year ending May 2022 versus the year ending April 2022.

MONTH-OVER-MONTH

Before seasonal adjustment, the U.S. National Index posted a 1.5% month-over-month increase in May, while the 10-City and 20-City Composites posted increases of 1.4% and 1.5%, respectively. After seasonal adjustment, the U.S. National Index posted a month-over-month increase of 1.0%, and the 10-City and 20-City Composites both posted increases of 1.3%. In May, all 20 cities reported increases before and after seasonal adjustments.

ANALYSIS

“Housing data for May 2022 continued strong, as price gains decelerated slightly from very high levels,” says Craig J. Lazzara, Managing Director at S&P DJI. “The National Composite Index rose by 19.7% for the 12 months ended May, down from April’s 20.6% year-over-year gain. We see a similar pattern in the 10-City Composite (up 19.0% in May vs. 19.6% in April) and in the 20-City Composite (+20.5% vs. +21.2%). Despite this deceleration, growth rates are still extremely robust, with all three composites at or above the 98th percentile historically.

And look at the Price chart!  Sure looks parabolic to us:

It’s Really Good and Really Bad

Our bottom line is that it’s great news for homeowners – as long as you can keep from pulling the trigger on a refi to keep up with other prices in life.  The bad part is that in our view, this increases the odds of the Fed going a full percentage point.

After the number, S&P stock futures were down almost half a percent.  So, a -150 or lower decline for the day on the Dow sure seems in the cards…

Writre when you get rich,

George@Ure.net

15 thoughts on “Housing: Screaming Prices”

  1. Almost 3 years ago we moved back from coastal Georgia to a more Ozarkian setting, which is our original area. We had a fine time down there, but we had too much house, not enough land and a dreaded HOA. I hate an HOA like a fat kid hates broccoli, but this one was still ran by the developer who did a decent job of keeping the stupidity to a minimum. We went to an annual HOA meeting the first year we lived there and my, but was it eye opening. Our neighbors who chose to show up were shockingly…well, not so bright.

    When we moved back here we weren’t in a position to buy our ‘forever’ home, so after MUCH persuasion with my wife, we bought an older house that needed fixing up. The house has good bones, but the rest of it needed updating. Plus, it’s located on a couple of acres on a ridge outside of any city limits. It has a great view with nothing behind us for miles. It’s on a no-outlet street and most of the neighborhood is like minded folks. Defensively and tactically it’s an awesome spot. I’ve had the defense of the mountain planned out for sometime.

    I am no stranger to sweat equity and I’m reasonably well rounded in most handy bastard skills. I grew up that way because that’s how my folks bought houses and we are country folks. They bought low, worked their asses off and sold high. So, my plan WAS to build equity and then move on to a more permanent hacienda with more land, a shop, further from town, etc.

    Due to world events being what they are, it appears that we might be here longer than we had expected…or shorter if flash goggles are involved. That’s fine with me, but I have decided not to make much mention of it to the missus. She’s not quite the fixer-upper type and she doesn’t really like it here, but she plays along. The original fixer-upper plan was to renovate with nice finishings, but not too nice. There’s a point in any house where you will spend more than you can recoup on a later sale. Now, I’m thinking we might need to be here much longer, so I’m planning to step it up a little more. I had the back acre cleared in the event a large garden goes in and I want my wife to be happier here than she is and make the best of it with whatever she wants in the house. This might be the forever home.

    • Maannnnn, I am with you about the HOA. Never lived in one, but knew quite a few people who have. Ridiculous to pay extra to live in a neighborhood! Currently, I’m on 5+ acres on a dead end road with fantastic neighbors (also very private people, too) and couldn’t be happier. Well, maybe I could if I could reasonably pay someone to make a nice inner wall for the dam end of my pond, but that’s going off tangent here. The people I know who live in “Christmas Lake Village” about 15 minutes from me pay alot in HOA fees a year to be there and have a “DECLARATION OF COVENANTS AND RESTRICTIONS” that is 22 pages long! I just saw a listing dated to July for 1/2 acre of land with no construction on it, with HOA fees posted at $918 a year.

      • The concept is reasonable, but the execution is bullshit. I’m not paying somebody a monthly fee so I can ask permission to do what I want with my property.

  2. Loads and loads of psyoptic rhythmic dribble from one of the head team members . Getting old and tired that fella . Get gold baby !!!! Get on !!! He never talks about gold it’s taboo for that gene pool

    • Hahaha – You think that clown is old and tired ?!?! Get a load of the “Leader” of the “Free World’
      -oh scheisse am I cracking myself up with this one…

      https://www.youtube.com/watch?v=6kSgsP-penk

      If that scheisse dont concern/confront you none – well good luck wit da chicomms – soon to be “red”man.

      Got cave ? exposure kills…dont ya know.

  3. eh have a go at em . they scare the f out of you with all facets of economic doom and war and weather and jab stories . just get gold gold gold . train hard listen to music and trust no c . these blokes are amateurs . gold baby . just ask the core logic tossers . forget the camel jockeys meeting now in the eccles brothel . nana might be givin em all a show with some patrami

  4. crash !!!!!!!!!!!!!!!!! get short !!!!!!!!!!!!!!!!!!! get that fat lunch money . im getting gold stocks baby . they have crashed for months while you were listening to dribble . in order to sell high buy low . wonder if the pretzel talks about that one

  5. yaaaaaaaaaaaaayyyyyyyyyyyyyyyyy. a market crash !!!!!!!!!!!! good on yah old nana and jerome jerk . yyyyyyyyyyyyyaaaaaaaaaaaaayyyyyyyyyyyyyyyyyyyyyyy sucker the yankees !!!!!! give em the old 1 / 2 combo !!!!!rocky balboa powell . here come da judge here come da judge . his head is shrinking from jabbs and the little gut is showing . he is fully plugged in for destruction rocky powell . like the superbowl tommorrow nite !!!!!!!! the camels v the yankees . wow how goods the half time entertainment . nana rapping . great tucker as well bugs and moths

  6. toot toot !!!!!!!!!!!!!!!!!!!!!!!! i tellya boy you cant handle the truth !!!!!!!!!! the USSA is broke !!!!!!!!!!!!!!! got no gold just a lot of worthless iou paper !! shock horror !!!!!!!!!!!!!!!!!!!!! toootttt tooot !!!!!!!!!!!!!

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