Home Price Growth At Record High (Fed Wants To Take It Higher!) Phoenix Leads At +25.9% YoY

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by confoundedinterest17

The Federal Reserve wants to take home prices higher. But not taking any action … until next year(?)

The Case-Shiller home price index rose a record high 16.6% YoY in May. The problem with Case-Shiller is that it is the end of July.

Here is my concern that I mentioned in Benzinga. When home prices are growing at record highs (+16.61% YoY) and hourly wage growth is a paltry +2.28% YoY), were have serious affordability problems. That will eventually lead to a slowdown in home price growth.

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The spread between home price growth an hourly earnings for workers is also at an all-time high.

How hot is the US housing market? All 20 metro areas in Case-Shiller’s 20 index are in double digits. Chicago is the slowest at +11.1% YoY. Phoenix AZ is the hottest at +25.9% YoY.

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Here is Fed Chair Powell trying to tame home price growth at the Jackson Hole meetings.

 

 

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