Menu Close

Housing Just Another Miserable Fed Failure

Housing Market Epitomizes Fed's Failure - Click to enlarge

The mainstream media dutifully reported a 2.8% gain in the headline seasonally adjusted number for housing starts. It was just another example of how misleading seasonally adjusted data can be. On a year to year basis, actual total starts are down from 83,300 in March 2013, to 79,100 last month. That’s a drop of 5%. Much of the decline was in the booming multifamily starts which fell by 5,200 units or 18% year over year. Single family did better, increasing by 1,500 units or just under 3%. But it remains at depression like levels.

This chart tells the story at a glance.

Housing Market Epitomizes Fed's Failure - Click to enlarge
Housing Market Epitomizes Fed’s Failure – Click to enlarge

While the Fed has done a great job in stimulating a raging housing price bubble, sales and starts are still bumping along the bottom. This is normal. A return to bubble levels is not in the cards.  The Fed engineered housing inflation has ensured that.

Join the conversation and have a little fun at If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter.

This site uses Akismet to reduce spam. Learn how your comment data is processed.