The data in this graph comes from the Case Shiller Home Price Index going back to 1970.
It’s inflation-adjusted. Meaning that it measures the cost of Homes compared to other goods/services in the economy.
Making it an apples to apples comparison for Home Prices across time.
— Nick Gerli (@nickgerli1) November 14, 2022
This where slowing Inflation is actually a big problem for the Housing Market.
Because many real estate investors and homeowners were counting on huge levels of inflation going forward to justify current price levels.
It doesn’t look like that’s going to happen.
— Nick Gerli (@nickgerli1) November 14, 2022
And perhaps the biggest impact of declining Rents is on real estate investors.
Their revenues/incomes are now declining just at the moment that the Fed is aggressively increasing their cost of borrowing (aka interest rates).
Recipe for a massive investor firesale.
— Nick Gerli (@nickgerli1) November 14, 2022
Federal Reserve Alert! Fed Vice Chair Michael Barr testifies at Senate Banking Committee: “I think that it is the case we are going to see significant softening in the economy,”
Trending:
- You’ve Been Gaslighted – Democrats Just Stole Another Election
- Anon Claims He Found Absolute Proof of Voting Fraud in Arizona
- UKRAINE “MILITARY AID” FROM USA — WAS INVESTED IN CRYPTO “FTX” BY UKRAINE!
- Survey reveals mass mental illness in Gen Z, with 57% of young people now taking medication just to cope
- Face of Vaccination Campaign Dies
- How Did Maggie Hassan Get 1100 Votes in NH Town With a Population Under 700? UPDATE
- 2 days after election 10,000 Amazon Employees to be let go, 60,000 Facebook Employees to be let Go, Musk still firing thousands at twitter
- PPI misses across the board again…Watch what happens once inflation relief turns into realization as to why inflation is dropping.
- Major Banks Are Closing Accounts For No Reason, Keeping peoples money, Bank of America, Citibank, HSBC, Chase
- U.S. Consumers Are Doing EXACTLY What They Did Just Prior To The Crash Of 2008
Views:
37
