INFLATION CRIPPLING THE PUBLIC: Look At What Just Hit An All-Time Record

Inflation is crippling the average person, but look at what just hit an all-time record.

More Inflation
 (King World News) – Peter Boockvar:  While somewhat dated, S&P CoreLogic said its US home price index rose 19.7% y/o/y in August after a 20% print for July. While we know this is not included in CPI and rents are instead, if it was, CPI would running north of 10% as housing alone is 30% of CPI and 40% of the core.

Home Price Appreciation Has Skyrocketed,
Very Reminiscent Of 1970s Inflation

A 33.3% increase in the Phoenix area led the way. One would think this was bitcoin but instead is a home that some family is trying to purchase. San Diego and Tampa rounded out the top 3 gainers. At the bottom in terms of price gains was Chicago with ‘only’ a 13% increase with Minneapolis and DC right above.

1970s-Style Stagflation
Bottom line, the cost of living is running at an aggressive pace and ending QE does nothing to offset that. Only rate hikes really impact demand and we know Powell is afraid right now to touch that. Instead it will be the inflation itself that slows demand. With respect to housing, there are definite signs that buyers are stepping back and the pace of home price gains is on the cusp of slowing.

New home sales in September totaled 800k, 44k more than expected but almost completely offset by a downward revision to August by 38k to 702k. Smoothing out this volatile number has the 3 month average at 738k vs the 6 month average at the same 738k. The year to date is 791k and 12 month average is 824k.

Home Sales Well Below Level Seen At Previous Peak

The y/o/y median home price was up 19% which is pretty similar to what S&P CoreLogic said for August in its different calculation. Months’ supply fell to 5.7 but at around 6 is historically average.

The bottom line remains the same with housing that is combining little inventory and cheap money which in turn is resulting in aggressive home price increases that has caused a plateau in the pace of transactions particularly from that first time buyer…

---

To find out which silver company just made a major acquisition that will
quadruple their production click here or on the image below

---

The Conference Board’s Consumer Confidence index for October rose 4 pts m/o/m to 113.8, better than the estimate of 108 and vs 115.2 in August. Both the present situation and expectations components were higher m/o/m. The peak in 2021 was 128.8 back in June and it stood at 132.6 in February 2020. One year inflation expectations quickened to 7% from 6.5% and that is the highest since July 2008 when oil was approaching $150 a barrel.…..More Here

Click here for reuse options!
Copyright 2021 Hiram's 1555 Blog