Housing

There’s No Inflation? Rents Rise 4.3% Year to Year But They Don’t Count

Owners Equivalent Rent vs. Market Rent- Click to enlarge

Median market rent for US rental housing units rose 4.3% year over year in the first quarter of 2015, according to data released today by the US Census Bureau. All of the gain came in the latest quarter, as rents were nearly flat for the previous three quarters. The first quarter increase compares with an…

Sing LA LA LA and Pretend Housing Doesn’t Count – That’s How Conomists Ignore Inflation

Home Sale Prices and Volume- Click to enlarge

In the hall of mirrors where conomists live, there’s no housing inflation. When the prices of consumption goods rise it’s “inflation.” But when housing prices rise, it’s not inflation, it’s “appreciation.” It’s like stock prices. There’s literally no stock price inflation. There’s “multiple expansion,” or “appreciation,” but there’s no “inflation.” That’s how establishment conomists can claim there’s no…

Here’s Why We Appreciate Housing Sales and The Fraud MUST Go On

Existing Home Closed Sales and Contracts- Click to enlarge

“Sales of previously owned homes rose in February, a sign that the housing market is healing…” That’s how the Wall Street Urinal reported today as it pointed to a 1.2% increase in the seasonally adjusted (SA)  nonsense National Association of Realtors (NAR) existing home sales (EHS) number. The reported figure is an  annualized number, multiplying the monthly…

Chart of the Day – Why Mainstream Financial Media Has Trouble Interpreting Abstract Impressionism

Existing Home Sales- Click to enlarge

If the mainstream media would just stop the silly nonsense of using seasonally adjusted (SA) abstract impressionistic data and then trying to explain it away, reality would be obvious. The headlines today said that existing home sales were down and then the Wall Street Jourbull tried to explain that away as a seasonal adjustment problem. Correctomundo!…

Here’s a Picture of The Single Family Housing Recovery- Holy Cow!

Single Family Housing Recovery- Click to enlarge

Here’s a brief comment from leading analyst on the new home sales news. http://capitalstool.com/music/holycow.wav In case you’re wondering, the seasonally adjusted (SA) headline, larger than expected gain, was due to calendar factors and the bogus drill of annualizing monthly SA data, which merely magnifies the monthly error times 12. But hey, who thinks about that!…