Home Prices Miss; Rise At Slowest Pace In 11 Months

Tyler Durden's picture

The FHFA reported home prices gained at the lowest pace in 11 months (0.3% MoM vs 0.8% expected) missing expectations by the 2nd largest amont on 13 months. It seems, just as we pointed out that with fast money leaving the room and slow money crushed by higher mortgage rates at the margin that indeed something had to give... Prices in the South Atlantic and East Central actually fell MoM.


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MFLTucson's picture

Recovery picking up steam!

superflex's picture

Whooo, whooo.  Thre train is leaving the station.  Too bad the track encounters a cliff with no bridge.


buzzsaw99's picture

Where's Beeks? Where in the hell is Beeks?

LawsofPhysics's picture

Oh no, the dreaded "deflation" monster is back and now my dollar can buy more, the horror, the horror!  < sarc off >  Please, no society/currency has ever collapsed/died because it's purchasing power was too strong.  Wake me when I get to use mark to fantasy accounting like the TBTF banks...

GetZeeGold's picture



They promise deflation but they keep printing money......not sure what to make of that.

mess nonster's picture

No currency may have collapsed/died with deflation, but plenty of real people have.

With the current split-flation we have now, going on since 08, real property asset prices have stagnated at best, while bankers get plenty of free money with which to buy up all these assets. 

Deflation is sheep shearing/harvesting. In the old days, with a split economy between gold and paper money, the paper was printed and given to the masses, while the gold was hoarded by the bankers. Then, the paper was deflated  and the assets produced during the boom were bought at reduced prices by the bankers with the gold.

Today, the bankers have discovered they only need to sequester the printed money (that is, keep it for themselves), and keep it out of circulation- then they can buy up all the assets with paper money without having to sully themselves with barbarous relics.

As long as gold is a commodity and not money, it can be treated like any other real asset, and bought with sequestered QE at manipulated lower prices.


LawsofPhysics's picture

Bullshit.  If a person has purchasing power, by definition, they can buy or acquire many things.  Try to pay attention moron.  By keeping money out of circulation people cannot pay the taxes to sustain the governements that keep the bankers in power.  People will also resort to barter.  All eCONomies are really local at the end of the day.  If the bankers are slitting their own throats, so be it. The question then becomes whether or not that purchasing power comes in the form of a can of beans, an ounce of gold, or a jacketed .45 round.

skipjack's picture

Stupid is as stupid does. Deflation only hurts those who use leverage, and it mightily favors those with cash. Who uses leverage the most ? The banksters and government, right ? So who is hurt by deflation ?  The banksters and the government.


Open your eyes and wipe the shit away and learn wat the banksters don't want you to know.

NihilistZero's picture

RE:mess nonster

The problem is if none of the money makes it back into circulation amongst the Proles, owning all the "assets" does jack and shit for you as their VALUE is jack and shit.  IE, Let the banks own all the houses while people are scraping by.  The cost of maintaining the properties in the face of faklling rents destroys your cap rates.  Blackstone is experiencing this now.  Velocity of money is at a stand still.  yhellin thinks QE Super-Turbo will increase velocity when in fact it will do the opposite as the banks will continue to hoard money in the face of INEVITABLE deflation.

Also, fears of another Great Depression are unfounded.  Infrastructure is in place that won't go unused and we aren't facing a drought that is going to destro our food supply.  This is all a battle to save the living standard of the top 20-2%.  They don't want to fall down to the bottom 80%s level.  Of course the top 1% will be okay regardless.

monopoly's picture

Yup, liftoff soon. Breakaway gap any day now with no looking back. :)

SheepDog-One's picture

What kind of travesty is THIS? Home prices aren't rocketing upwards? The horror.....

Mercury's picture

At some point quality hard assets are going to be the chairs you want to be sitting in when the music stops so, aside from PM there aren't many other places to hide.

I can't imagine being a seller of high quality RRE here (unless I had -ahem- personally engineered a supply shortage and wanted too pull out with a tidy profit before something unfortunate happened).


"US housing Prices" may have some value as an macro-economic indicator but other than that it's too much of a kitchen sink to be meaningful. You know the mantra - location...

MachoMan's picture

Not sure what "high quality" means, but locally there is not a particularly high premium for top shelf properties in great locations.  All the RE agents price everything at $100/sq ft., regardless of condition, location, etc.  Those folks who know what they're doing have been consolidating into the better quality properties on the cheap.  Now we're starting to see a little softness (and I mean slight), but it's only incredibly marginal/bad properties that are having to take any haircuts.

I guess it's a similar strategy to buying bullion with numismatic value when it's the same price as plain ol' bullion... 

CPL's picture

Most people can't afford rent and Banks are still pissing on about home prices.

MachoMan's picture

Which is pretty wild in those markets that have a very low cost of rent (versus buying).  If you are lucky enough to be able to itemize deductions, the mortgage interest deduction drops the cost of ownership to almost ridiculous prices at present interest rates.  Locally, you can get a brand new construction, very decent house, 3/2 or 4/2 ~1,600 sq ft., 2 car garage, .20 acre lot, in a nice neighborhood for ~$145k.  With the seller paying your closing costs and putting 10% down @ 4.00% 30 year, you're looking at ~$625/mo. mortgage?  Of that $625, probably $150/mo. goes to principal, with $475/mo. left over as interest.  At a 25% marginal tax rate, that $475 turns into $350/mo. net of nets.  The fact that even this is unaffordable for most ought to be of considerable concern.

There are a lot of folks who'll be paying premiums under the "affordable care act" that are higher than their mortage...  crazy.

skipjack's picture

Take those numbers, apply it to a 15 year mtg to starve the banksters, and own your own place free and clear a whole lot sooner.  Even better, use part of your place for business, write off all kinds of deductions, and you're done even sooner.

Starve the beasties !

SheepDog-One's picture

So basically the plan was print a shitload of fake money so stocks would go up, and that bubble would bail out the banks MBS garbage they're sitting on, and it's not working?

Oh well...on to Plan F I guess, print a shitload more money.

HUGE_Gamma's picture

This proves there is no housing bubble..

wagthetails's picture

wait for it....wait for it...wait for it....

BullyBearish's picture

#1 = No Taper

#2 = Yellen

#3 = Shutdown

#4 = Crude allowed to go down

#5 = Bad Economic Reports

Meltdown in progress: bonds are rising, profit taking, setting up for market to decline enough to "justify" more QE

firstdivision's picture

Hey Ben, how's those MBS market to market holding up on your balance sheet?

LawsofPhysics's picture

Once your 401k is forced to buy them, everything will be fine.

Sincerely yours,


firstdivision's picture

Good thing my 401k is set to 0.00% of income.  I'd rather take the immediate hit in taxes and the opportunity cost of company match, to have the dry powder to keep buying real physical gold.

Sufiy's picture

Taper Anyone, lets check who will be driving the FED now, watch US Dollar and Gold now:


Peter Schiff On Gold Catalyst: Janet Yellen Exposed - The Truth Behind the Myth

 Peter Schiff separates truth from the mass media hype about Janet Yellen's real track record. As we have discussed before, her core beliefs are even more neo-keynesian than those of Ben Bernanke. The new play book for the FED is written by Michael Woodford and it will be even more fundamentally positive for the Gold. We can expect continuation of "pro-growth policies" with very little regard for the created bubbles along the way.
  Peter was right about the Housing Bubble in 2006, he was right about the "Tapering" in September, what will happen if he is right again with his Call on Gold? We will provide his discussion on Gold and our entry on Michael Woodford to dig it out more for interested.


Gold Catalyst - John Williams: Very Serious Trouble in this Next Year - Weaker Dollar and Hyperinflation GLD, MUX, TNR.v, GDX

 "John Williams is very respected economist who is providing  the real economic data, which is not massaged by the government desires and wishful thinking. His view at the crucial juncture for US Economy and Health of US dollar us very important to share now.

mess nonster's picture

Perhaps the best definition of a useful idiot would be someone who intellectually supports a cause, but who aheres to some form of ethical behavior, and refuses to murder anyone. 

By this definition, Hillary Clinton is NOT a useful idiot, but Janet Yellen certainly is.

i imagine Yellen really believes her job is to create full employment while keeping inflation low. Her masters understand that her job is to faten the pig and then slaughter it.

Yellen may prefer to be a Fattener, but she may discover she has a butcher knife in her hand. I grieve for your soon-to-be- lost innocence, Ms. Yellen. 

It all depends on the scenario. Is it A) certain systemic destruction, and the elite are doing everything they can to hold an unsustainable economy together, despite the impossibility of the task, or is it B) simply harvesting time, and yet the job is more complicated now than it was in prior generations- how to steal assets without collapsing the entire system.

Somehow, I can see Yellen believing the first, but not being cynical enough to embrace the second. 

Summers knows the score. If given the job, he'd have bitten out the throat of the victim with his own teeth, and enjoyed it. But some jobs require idiots and not players. Yellen was the pick for this reason.