Existing home sales rose 2% in October to 5.48M units SAAR, according to the National Association of Realtors.
But what was interesting in the October report was the continuation of the shrinking inventory of existing home sales which shrank to 1.8 million units, less than half the available inventory during the housing bubble years of the last decade.
The good news is that existing home sales median price YoY remains steady at 5.5%.
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This is good news, except for the fact that US Avg Hourly Earnings Private NFP Prod&NonSup In Nom$ YoY is only 2.3%. That is an (un)affordable gap of 5.5% price growth and 2.3% earnings growth for most Americans. That ratio is over 2X.
Limited inventory, low wage growth and super-accomodative monetary policy since 2008. As Parks and Recreation’s Ken Wotate said regarding a Native American tribe making a deal with the government, “What could go wrong?”
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