FHFA: THE HOUSING DOUBLE DIP IS HERE
This morning’s new home sales report and the FHFA House Price Index are confirming that housing is indeed double dipping. According to the latest new homes sales report median prices plunged -13.9% in October to $194,900. The average price fell -8% to $248,200. Supply of new homes rose sharply to 8.6 months.
The FHFA’s House Price Index fell -3.2% year over year in the third quarter:
“FHFA’s seasonally adjusted monthly index for September was down 0.7 percent from its August value. The monthly increase for the July-to-August period was revised from an initial estimate of +0.4 percent to 0.0 percent (flat prices).
While the national, purchase-only house price index fell 3.2 percent from the third quarter of 2009 to the third quarter of 2010, prices of other goods and services rose 2.0 percent over the same period. Accordingly, the inflation-adjusted price of homes fell approximately 5.1 percent over the latest year.”
Cullen Roche
Mr. Roche is the Founder of Orcam Financial Group, LLC. Orcam is a financial services firm offering research, private advisory, institutional consulting and educational services.
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QE3 to target the long end of the yield curve, specifically setting price rather than increasing quantity as in QE2? The powers that be at the Fed are debating it now.
QE4 to target the level of the S&P (up). QE5 to target the price of gold (down). QE6 to target the price of food, oil, and pessimism (down). QE7 to help the BOJ target the Japanese stock market, the ECU European stock markets, and otherwise help prop up all other stock markets, creating a global “wealth effect”. QE8 to target the price of moonbeams and unicorns. QE9 to fight the force of gravity (especially as pertains to stock valuations). QE10 to slow the speed of light (in particular the time it takes for bad news to hit inquiring eyeballs). QE11 to reverse the expansion of the universe (hopefully reversing time in the process, preferably to 1995). QE12, to be determined on an as needed basis.
FED to continue playing whack-a-mole?
Turns out the real mole is in the Treasury. How long ’til they catch him & throw him out?
I’m having a hard time finding the 13.9% plunge…which would indeed be headline news…
Over what time period, where, comparing what?
I did find a few MSA’s matching that figure.
I see you left me enough time to answer my own question. I was trying to find the 13.9% figure in the FHFA report.
http://www.housingwire.com/2010/11/24/nation-has-8-6-month-glut-of-new-homes-on-market-census-bureau-says
Yeah, that’s a bad news bear right there…yet, the market shrugged.
Sorry Roger. Missed that comment. You can read the full report here: http://www.census.gov/const/newressales.pdf
It’s really atrocious. Remember though, the market ignored poor housing data in 2007 for much of the year….
Like I said in another post, most of the true economic data has been poor for at least 9 months. But that data has either been ignored or spun. This only works as long as there is that constant $8-12 billion every week into th e market from the Fed. And no I don’t blame people for trying to make some money trading. I do however wish the Fed were held accountable for taking these actions without congress’s agreement. We already know from numerous polls and this last election that a large majority of the voters do not agree with the Fed funneling money to the bankers.
Damn the torpedoes: full speed ahead in the stock market.
“We already know from numerous polls and this last election that a large majority of the voters do not agree with the Fed funneling money to the bankers.”
ahmen -
I tried to cut and paste this chart…you’ve really got to see it to grasp what a change it is.
http://www.mortgagenewsdaily.com/11242010_new_home_sales_fall_unexpectedly_in_october_median_prices_plummet.asp
New home sales have fallen to a whisper. I cannot imagine a job recovery that doesn’t include putting people in the construction/home building business back to work.