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According to the National Association of Realtors, existing home sales fell 1.3% in July. This is the lowest sales figure in 11 months.
But what is noticeable is the rise in median existing home prices (zooming upwards) relative to inventory (low). Sprinkle in The Fed’s zero interest rate policy and we have a party!
Here is the change in sales price broken down by price range. Homes under $250,000 actually declined in price while homes over $1 million rose by 19.8%.
Low inventory and excess liquidity sloshing around the economy is creating a home price squeeze.
Will Yellen show this chart at Jackson Hole?