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Baffle With BS Continues As House Prices Beat And Miss At Same Time; Detroit Home Prices Go Parabolic

Tyler Durden's picture




 

It's a full-on "Baffle with BS" onslaught this morning. On one hand, the Case-Shiller Top 20 Composite Index rose by 13.3% Y/Y, better than the 13.00% expected, and the highest annual price increase since 2006. Unfortunately, the ramp is coming to an end, especially since the touted NSA data shows that monthly price increases have slowed for the fifth consecutive month, and stood at just 0.7%. At this rate the sequential price change in October will be negative. This is further reinforced by today's "other" housing report: the September FHFA House Price Index, which unlike Case-Shiller rose 0.3%, below expectations and in line with last month. So on one hand home prices are better than expected, on the other: worse. Clear as mud.

 

But one thing is certain: the surge in the housing market of bankrupt Detroit has never been stronger, and the Y/Y price change just picked up once again, rising to a 3 month high of 17.2% compared to last year.

Perhaps all US cities should just file bankruptcy and see their home prices go through the roof?

 

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Tue, 11/26/2013 - 10:30 | 4190360 Chief Kessler
Chief Kessler's picture

ex officer Pike will be first in Ted Nuggets crack tonight ladies!

Tue, 11/26/2013 - 10:43 | 4190387 slaughterer
slaughterer's picture

Isn't Ozero giving a speech on this later today?

Tue, 11/26/2013 - 10:30 | 4190361 flacon
flacon's picture

>Perhaps all US cities should just file bankruptcy and see their home prices go through the roof?

 

That is a disengenuous comment. A home selling for $1,000 more today than two years ago would have experienced a 100% increase, but still be valued at $2,000 for that home. 

Tue, 11/26/2013 - 10:32 | 4190367 Seasmoke
Seasmoke's picture

but you did still double your investment. 

Tue, 11/26/2013 - 10:35 | 4190373 flacon
flacon's picture

But is the price "through the roof" considering one could purchase a home for $2,000?

Tue, 11/26/2013 - 10:41 | 4190385 1000 splendid suns
1000 splendid suns's picture

And with a $2,000 house, you'll probably have a lot more coming through your roof, like rain, bullets and crack whores.

Tue, 11/26/2013 - 10:59 | 4190413 Keyser
Keyser's picture

So let the speculators keep selling the same property to each other infinitum, inflating the value and blowing yet more bubbles. It makes the numbers look good, but who wants to live in a former crack house in south Detroit? There is a fundamental disconnect between reality and wall street. 

 

Tue, 11/26/2013 - 13:04 | 4190791 Bunga Bunga
Bunga Bunga's picture

Who cares? See it from the investment standpoint. You don't even need to spend tons of money on a fake dot com with fake management and fake sales reports in order to make some money. A pile of idled scrap wood does to job now.

Tue, 11/26/2013 - 11:22 | 4190474 waterwitch
waterwitch's picture

what roof?!

Tue, 11/26/2013 - 14:43 | 4191197 buttmint
buttmint's picture

flacon...read the fine print!

A house for $2k has NO roof! That is an optional extra and if you install a roof, be ready to pay a ROOF TAX!

Tue, 11/26/2013 - 15:20 | 4191344 A is A
A is A's picture

"investment"

Tue, 11/26/2013 - 10:31 | 4190364 Seasmoke
Seasmoke's picture

Pensions of the public takers @ .16 ¢ will do that for you.....hopefully the other cities and towns will follow ASAP. 

Tue, 11/26/2013 - 10:37 | 4190375 Rainman
Rainman's picture

Scam Bernardino, CA comes to mind.

Tue, 11/26/2013 - 13:38 | 4190913 FEDbuster
FEDbuster's picture

State of Illinois is taking 4-6 months to pay it's bills.  They expect the total pile of unpaid bills to be $9 billion by the end of the year.  When the ponzi collapses it will be epic.

http://www.nbcnews.com/id/37136518/#.UpTaBeIucZw

 

Tue, 11/26/2013 - 14:22 | 4191110 Nick Jihad
Nick Jihad's picture

Long scrap metal recyclers.

Tue, 11/26/2013 - 10:38 | 4190377 yogibear
yogibear's picture

So the scam continues. Bump up Detroit, take loans against the properties, off-shore the money and then default.

Housing bubble #2 is progressing well.

Time to take advantage of Bernanke/Yellens free money and make it disappear.

Just like those bags of cash disappered in Bagdad.

Tue, 11/26/2013 - 10:40 | 4190380 I am Jobe
I am Jobe's picture

Reno, Nevada comes to mind. Enjoy the dream bitchezzz. 

Tue, 11/26/2013 - 11:18 | 4190465 RobD
RobD's picture

Hey now be nice, my underwater home only lost 3K last month lol. We had a nice little dead cat bounce here in Reno and now it's over. I tried to short sale my place last year and those bastards at JP Morg/Chase said "No Sale For You!". Just waiting for the SHTF so I can walk away.

Tue, 11/26/2013 - 10:41 | 4190383 the not so migh...
the not so mighty maximiza's picture

quick buy now before we run out of land and houses!!!

Tue, 11/26/2013 - 10:43 | 4190388 LawsofPhysics
LawsofPhysics's picture

Plenty of houses (being held and marked to fantasy on the bank's balance sheet),  Land?  not so much.

Tue, 11/26/2013 - 10:43 | 4190386 LawsofPhysics
LawsofPhysics's picture

Please, banks control all aspects of this "market".  Stop believing your lying eyes.  put all the unoccupied properties on the damn market and let anyone with cash (savers) buy them motherfuckers.

I remain long sharecropping and black markets.

Tue, 11/26/2013 - 11:25 | 4190485 waterwitch
waterwitch's picture

Detroit has one of the largest urban farms in U.S.  See Hantz farms: http://www.hantzfarmsdetroit.com/

Tue, 11/26/2013 - 10:45 | 4190390 yogibear
yogibear's picture

Free housing ATM #2. Max out home and HELOC loans, then default. A gift.

Max out those housing loans and transfer the money to non-takeback investments.

Banksters (Da Fed) can have trillions more of garbabge, non-performing loans.

 

Tue, 11/26/2013 - 10:45 | 4190394 PT
PT's picture

Last year the Detroit home cost a dollar.  This year it sells for $1.17.

Tue, 11/26/2013 - 10:47 | 4190399 PT
PT's picture

But all the money you save is lost in the commute to your job.

Tue, 11/26/2013 - 10:48 | 4190401 firstdivision
firstdivision's picture

Bought a house yesterday for $4 in Detroit.  Today I tore it down, sold the land for $4 and the scrap wood for $4.  Made 100% profit.  Things are looking up for Detroit.  Plenty of land for development available, just make sure to wear you're riding in your bullet-proof car.

Tue, 11/26/2013 - 11:28 | 4190504 PT
PT's picture

And by "scrap wood", he means "charcoal".

Tue, 11/26/2013 - 11:42 | 4190534 jmcadg
jmcadg's picture

Unfortunately the bulldozer cost $200 a day and your labour cost of $x a day.

Little bit of a loss presumably :(

Tue, 11/26/2013 - 10:52 | 4190405 new game
new game's picture

about 1/2 of the new listings in rural mn are short sales and bank forclosures

a rush to dump the shit into a low inventory echo bubble market...

Tue, 11/26/2013 - 11:03 | 4190420 adr
adr's picture

Does that mean I can get more for my house? Nope.

Must be why all the listings are going down in asking price as well. I just took a flyer for a new shitbox home in a shit development in Mass. Six months ago they were asking $365k. Now it's $277. Maybe if it was selling for the $125k it's worth I'd buy it. The builders decided to heat the house with propane.

Tue, 11/26/2013 - 11:23 | 4190446 evernewecon
evernewecon's picture

 

 

Carrying dead weight...

 

(for what we pay to do just that

we could feed, educate and

heal millions)

 

...artificially

manipulated mortgages combined with

Case Shiller works to make the market

look like it's priced for the

BMW's on the driveway when the averages

should really include the Lada's

in the (banks') garages.

 

http://pages.citebite.com/o2c0d2e1j0mlb

 

Case Shiller

 

per Jurow weighs more round trip

purchases and sales both of more

recent vintage, thus reflecting the

time after the start of price and

inventory manipulation.

 

http://pages.citebite.com/d1i8e3n1t3rpv

 

Now that the bankers themselves are

withdrawing from the cash market 

 

http://www.zerohedge.com/news/2013-11-26/realtytrac-institutional-invest...

 

 

for buying properties many of whose losing

mortgages are essentially compensated

for by the Fed itself, the privatized

little system is looking closer to

finishing buying the adversity it

created.

 

 

This,

 

http://video.cnbc.com/gallery/?play=1&video=3000221314

 

From MSM Financial

TV Itself, Defines The 

Little Private Economy Going

On Between The Fed And 

TBTF, Including Where The

Banks' Own Artificial Mortgage

Bubble Is Parked, And Why It 

Hasn't Yet Impacted Money 

Supply (Shafting Main Street

Also Slows Velocity, And The 

Liquidity Trap Itself Does 

That, Of Course.)

 

 

However, It Is Instead Of

More Useful Lending And Does

Represent Carrying Dead Weight,

Except They're Hoping Our 

Engineers Will Engine The U.S.

To New And Greater TBTF Bubbles

To Short In The Future.

 

There's Value Destruction Going

On From The Rest Of The Economy

Not Being Party To That And 

In Key Point Of Course Those Who

SOLD The Bubble Are The Converse:

They Should Get A "Normal" Return

On Proceeds/They Should've Been

Allowed To Clear The Shadow

 Mortgage Inventory Long Ago.

(Non-Recourse For The Mortgagors

--Some Banks In The Chain, Not

Simply The Taxpayer,

 Should Have Skin In The

Game.)

 

Those Who

Actually SOLD The Bubble 

And Have Been Getting 

Monetarily (And Fiscally--

Paying For Bank Loss Sharing)

Ripped Off, Of Course.

 

 

The Mortgage Bubble Is Inflation

Incarnate, Where It's 

Carried Beyond Real Value.

Where The Economy Might 

Happen To Catch Up With 

Nominal (Otherwise Wrong)

Value, It's Dead Weight In

The Interim, Unless Buying

Bubbles Are Good Investments.

That's What Bubble Sellers

Are For.  They Shouldn't Pay

For Carrying Dead Weight

And Having Their Monetary

Policy Participation Vaporized.

  Value Destruction 

Offsets The Inflationary Effect

Of Buying Bubble Assets 

Not At Discount Relative To 

Real Growth (Today

Almost Impossible To Measure,

Owing To The Clouded 

Inflation Measures, And The

Fact That Measuring U.S. GNP

In Bxtcoins Looks Pointless

Says Something Limiting 

About Them.)

But, I Land On Hanging Ponzi

Scheme Lending Itself To More

Inflation, Which, Combined With

Value Destruction, Implies 

Stagflation.

 

About the BMW/Lada thing toward

the beginning, I know a lot of people

thanks to privatization would be happy

to have a Lada, and I know people hate

it when someone chooses a video to

personal taste, but this Lada thing's

funny anyway, and I happen to know 

people in SE Michigan.

 

http://www.youtube.com/watch?v=fmENKHmGUX4

 

 

 

 

Tue, 11/26/2013 - 11:18 | 4190466 PT
PT's picture

Hey!  I have a nidea!  If the Detroitians build lots of houses and sell them to each other then they will get rich!  Why, they might even get so rich that they can afford to buy cars and then they'll need to build a, a ... car factory!!!

On a totally unrelated note:  Yum, yum, yum!  I like to eat my idiot pills.  Yes sirree!  My idiot pills are very yummy!  Do you want one? 

Tue, 11/26/2013 - 11:26 | 4190489 PT
PT's picture

My Idiot Pills come with Idolized Fluoridated Essence of DancingwiththeKardashians.  They really are that stupid!

Tue, 11/26/2013 - 11:42 | 4190537 Save_America1st
Save_America1st's picture

"clear as mud"...maybe these guys can help get the real numbers:

http://www.muddywatersresearch.com/

they seem suitably named, lol

Do NOT follow this link or you will be banned from the site!