Case-Shiller Home Prices Jump Driven By West Coast Chinese Buyers

Tyler Durden's picture

US Home prices rose 5.75% YoY according to Case-Shiller (the fastest rate since July 2014) as it appears the Chinese buyers are migrating south from Canada with Portland, Seattle, and San Francisco reported the highest year-over-year gains among the 20 cities with another month of double digit annual price increases.  Home prices continue to climb at more than twice the rate of inflation amid a suply shortage as West Coast propertty markets become "Vancouvered."


The S&P/Case-Shiller U.S. National Home Price Index, covering all nine U.S. census divisions, recorded a slightly higher year-over-year gain with a 5.4% annual increase in January 2016. The 10-City Composite is up slightly at 5.1% for the year. The 20-City Composite’s year-over-year gain is 5.7%. After seasonal adjustment, the National, 10-City Composite, and 20-City Composite rose 0.5%, 0.8%, and 0.7%, respectively, from the prior month.

Portland, Seattle, and San Francisco reported the highest year-over-year gains among the 20 cities with another month of double digit annual price increases.

Portland led the way with an 11.8% year-over-year price increase, followed by Seattle with 10.7%, and San Francisco with a 10.5% increase. Eleven cities reported greater price increases in the year ending January 2016 versus the year ending December 2015. Phoenix reported an annual gain of 6.1% in January 2016 versus 6.3% in December 2015, ending its streak of 12 consecutive months of increasing annual gains. The western part of the country saw the largest price gains in the past year; the northeast is the weakest region.

Portland, Seattle, and San Francisco home prices are now above 2006/2007 bubble highs...


“Home prices continue to climb at more than twice the rate of inflation,” says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices.

“The low inventory of homes for sale -- currently about a five month supply – means that would-be sellers seeking to trade-up are having a hard time finding a new, larger home. The recovery of the sale and construction of new homes has lagged the gains seen in existing home sales. This may be starting to change: starts of single family homes in February were the highest since November 2007. The single-family-home share of total housing starts was 70% in February, up from a low of 57% in June 2015, and approaching the 75%-80% range seen before the housing crisis.


While low inventories and short supply are boosting prices, financing continues to be a concern for some potential purchasers, particularly young adults and first time home buyers. The issue is availability of credit for people with substantial student or credit card debt. While rising home prices are certainly a factor deterring home purchases, individual financial positions are more important than local housing market conditions. One hopeful sign is that the home ownership rate, at 63.7% in the 2015 fourth quarter, may be turning around. It is up slightly from 63.5% in the 2015 second quarter but far below the 2004 high of 69.1%.”



Coming to your West Coast real estate market soon.

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Space Animatoltipap's picture

Stagflation, here it comes.

Banker Buster's picture

I think we have been in a asset price growth with no real growth in the economy for over 3 years now ever since QE3 started, around Dec 2012.  The ignorant Fed have been sitting on their hands waiting for growth to follow ever since.  All the fed did was save asset prices from a reset/transfer that should have happened while strapping future growth with so much debt that there is no growth potential left.  Debt is the Fed's power so they can flip a switch and destroy all the debt sheep and have the reset/transfer on their terms.

The Real Tony's picture

Raise capital gains tax on foreign owned property like Ronald Reagan (just before he left office) did when the Japanese tried to take all of Hawaii.

_ConanTheLibertarian_'s picture

Trump will stop this shit. Screw globalization.

RiverRoad's picture

 These Chinese buyers will reap the same whirlwind the Japanese did when they bought Rockefeller Center from the wily Rockefellers who sold at the top and bought it back again after the market crashed.

de3de8's picture

More "good" news based on corrupt money

Budnacho's picture

...Those who refuse to learn from history are doomed to repeat it...buckle up friends, gonna get interesting soon....

Winston Churchill's picture

Lagging indicator I'm thinking, looking at how the high end RE market in Florida has collapsed since Xmas.

One of my clients is also having trouble selling his mansion on Long Island.

Something isn't adding up.

Has Case Shiller been got to as well ?

saveUSsavers's picture

Looks topped out here in San Diego tear-down nearby sold for $890K= RIDICULOUS remodel /2500sq ft

many $1mil + resales flooding market (over $500sq ft) TOPPED !

tarsubil's picture

I know someone trying to sell in south Florida. Just got the first offer after months. It was 20% below asking price. The sharks are already out trolling the waters.

silverer's picture

Screw listing my house with a local broker.  I'm running ads in prominent Chinese newspapers.

Life of Illusion's picture



“The low inventory of homes for sale -- currently about a five month supply – means that would-be sellers seeking to trade-up are having a hard time finding a new, larger home.The recovery of the sale and construction of new homes has lagged the gains seen in existing home sales. This may be starting to change: starts of single family homes in February were the highest since November 2007.


No construction money for small/med builders. Only big boy builders left and they keep housing price up as FED buy all paper to fund such a production/scam.

also chinese love to buy "NEW" paying way over price,,,builders love it


tarsubil's picture

That's the biggest issue I see. No one seems to be interested at all in building a normal affordable house. Only mansions are being built.

_ConanTheLibertarian_'s picture

They Vancouvered some folks.

CheapBastard's picture

" There's never been a better time then now to be a Chinese Mainland Money Launderer. "

Laddie's picture

You have to wonder how Whitey is going to like it competing, at a disadvantage, with people of color who will be the majority in a few short years, for housing, jobs, potable water...

2015-08-29 CHINA

DER SPIEGEL Interview with Singapore’s Lee Kuan Yew: “It’s Stupid to be Afraid” August 08, 2005

In multiracial societies, you don’t vote in accordance with your economic interests and social interests, you vote in accordance with race and religion.

TB cases increase in USA for first time in quarter century

Population Swelling in Almost Every State

Admin Funds Blitz To Naturalize Anti-Trump Voters

NOT BORN IN USA: Immigrant population over 15% in 16 states...Over 25% in 6...


90% of US Naturalizations from 3rd World

In a further confirmation of the danger that legal immigration poses to America, new figures from the Department of Homeland Security (DHS) have revealed that 90 percent of all US citizenship naturalizations in 2013 were made by people originating from the Third World.

Interview with Professor Kevin MacDonald October 23, 2015 Discusses the immigrant surge in Germany and loss of 2nd Amendment through immigration displacement of the founding stock of America, the Whites.
This is discussed by Dr MacDonald:

The NRA will fall. It’s inevitable. Just look at the demographics. The Washington Post, October 19, 2015
by Adam Winkler professor at UCLA School of Law

The fastest-growing minority group in America is Latinos. Between 2000 and 2010, the nation’s Latino population grew by 43 percent. Hispanics, which make up 17 percent of the population today, are expected to grow to 30 percent of the population in the coming decades.

Gun control is extremely popular among Hispanics, with 75 percent favoring gun safety over gun rights.

Asian Americans also represent a growing anti-gun demographic. Although only about 5 percent of the population today, the Asian American population is predicted to triple over the next few decades. A recent poll of Asian American registered voters found that 80 percent supported stricter gun laws.

Chinese comedienne Margaret Cho in NEW JERSEY a day or so ago ranted about "White Privilege"

The general tenor of these letters is: "Why can't we all just learn to get along with each other? We're really all the same. The only difference between us is skin color; why is that so important to you? Why do you hate people just because they're from a different country? By coming here with their different customs they enrich our lives." Et cetera. Some of the letters were more on the weepy, hand-wringing side, and some were more on the belligerent, hateful side, but they were all written by folks who are distressed that I want to stop the flow of non-White immigrants into America, boot out the ones who're already here, and then hunt down and hang the people who arranged to bring them here.

Some folks just can't understand why I want to do that. I must have spoken with a dozen interviewers for the mass media who asked me: "What's wrong with multiculturalism? Why do you think it's bad?" That's exactly what I was asked by a pretty, young woman reporter for a German television news program last week. And I believe that she was sincere. She really didn't understand. That's the lemming factor. The girl wasn't stupid. It's just that her brain is wired in such a way that she is incapable of absorbing any information or reaching any conclusion that is Politically Incorrect.
If multiculturalism and diversity were not promoted by the controlled mass media -- if wanting to have a clean, White America were still Politically Correct, the way it was here, say, 50 years ago, and also the way it was in her country until 1945 -- then she would be able to understand perfectly well why multiculturalism is socially, culturally, and racially destructive. She would agree completely with me. But because it is unfashionable to understand such things now, she can't. And I don't mean that she doesn't want to understand; I mean that she can't understand. That is the way lemmings function.

The Chinese are a people with whom we are rapidly becoming more and more closely involved, both through trade and through immigration. And the properly conditioned lemming will tell you that there's absolutely nothing wrong with that. The Chinese, after all, are exactly like us, except that they speak a different language, are a little darker, and have slanted eyes. They add wonderfully to our "diversity" here. They enrich our culture by their presence.

Well, actually they're not quite like us. They have different customs, and those different customs come from a different way of looking at the world, a different attitude toward life, and that different attitude evolved over the course of thousands of generations of living in a different environment from the environment in which our ancestors lived. For example, the Chinese eat babies and see nothing wrong in it. And what they do to cats and dogs they get their hands on is too horrible, too sickening, for me to describe here. What they do to cats and dogs is much worse than just eating them. But to get back to babies: I had heard reports from time to time about the Chinese custom of eating babies in the belief that it is an especially healthy thing to do. For a modern nuclear superpower, the Chinese have some strange ideas about health. These ideas have nearly wiped out a number of species of wild animals because of the insatiable Chinese demand for their body parts. Ground rhinoceros horn is in such demand that it has seriously threatened the rhinoceros with extinction. The same sort of demand exists for tiger penises and various bear parts.

Human babies are harder to get for eating, and I imagine that there are laws in China about killing babies for that purpose. But there seems to be no law against eating aborted human fetuses. A number of hospitals in China that perform abortions sell the aborted fetuses for eating. The smaller fetuses are cooked in a soup. The late-term fetuses are eaten more like roast suckling pig. The Chinese government understandably is a little bashful about having Western journalists publicize this sort of thing, just as it is bashful about having Western journalists film what the Chinese do to cats and dogs. Not to worry, though: Western journalists understand that it would be the worst kind of "no, no" to publish such information in the West; it might dampen the public's enthusiasm for more togetherness with the Chinese.
Despite the effort on both sides to keep these peculiar customs of the Chinese from becoming better known in the West, information is available to the diligent seeker. I recently acquired photographs taken in a restaurant in China of a Chinese man eating what is quite plainly recognizable as a late-term human fetus. The photographs are shocking and disgusting to me, and I imagine that they also will be shocking and disgusting to the average American lemming. They won't be shocking to Chinese, of course. Eating fetuses is no stranger to them than, say, the habit of eating snails in garlic sauce is to a Frenchman.

The significance I see in the Chinese habit of eating fetuses, even if only the wealthier Chinese can afford them, is more than simply a difference between us and the Chinese in culinary tastes or in ideas of what's healthy. A society that sees nothing wrong in eating babies, a race that finds this habit acceptable, is profoundly different from ours. The difference is far deeper than language or skin color or facial features.

Shocking Differences William Pierce PhD (Physics) Broadcast Date: April 14, 2001

Seek_Truth's picture

Snopes is an outed disnfo site:

It started out on a good foot, but has been co-opted.

spartan117's picture

Laddie, you're a fucking idiot for posting shit from 2001 without conducting more recent research.  Come back with a response versus simply down arrowing me.  

spartan117's picture

The author of your piece was a reknown neo-nazi.


You a fucking racist too, Laddie?  Feels good to hate others for their skin color, doesn't it, Laddie?  Makes you feel better as a person.  Good for you.

Vlad the Inhaler's picture

Fuck the Fed and the NAR. Keeping rates at zero while inflation goes crazy is nothing short of financial warfare on the middle class. While China is instituting bans on foreign homebuyers in order to keep their housing from entering a bubble, the USA is happy to sell off its assets to the highest foreign bidder in order to keep the bubble inflated at all costs and reward the gambling class.

Banker Buster's picture

Exactly.  It's like you pulled those thoughts straight from my head.  I couldn't have said it better.

ParkAveFlasher's picture

You're not rewarding the gambler class as much as pushing them out further and faster over the cliff edge.  It's a pair of rocket-skates strapped to Wile E. Coyote.

Theonewhoknows's picture
Theonewhoknows (not verified) Mar 29, 2016 8:48 AM

"Home prices continue to climb at more than twice the rate of inflation" With statistics so much in the gutter and real inflation being wayyyyyyy above the official stats we are even deeper than we think 

yogibear's picture

Chinese were great at running up worthless ghost cities. Now they have gone bust.

Chinese = Japanese buying Hawaiian real estate in the 80s.

Great bag holders. Working well in Canada.

KTV Escort's picture

Job market in Seattle is relatively hot compared to the rest of the US, besides the likes of Starbucks, Amazon, Nordstrom, Adobe, Expedia, Microsoft and assorted biotechs many companies such as Google & Facebook are putting substantial satellite offices here... rent at my Lake Union apartment went up 18% despite a plethora of new units everywhere, freaking out of control, for now.

Vlad the Inhaler's picture

Bbbbut Zero Hedge says the Seattle miminum wage law is destroying all the jobs!

Banker Buster's picture

Not completely disagreeing with you, but I have noticed people tend to try and find a reason to account for prices to continue to go up and up.  You can go anywhere in the world and if prices are going up even a little or even flat, people will give you a reason such as: Nice local weather, jobs, regulatory, nice local people, taxes, etc,...  Japan economy is in the trash and their high end real estate market is booming.  China same.  I think local factors matter less in a central bank whore house the world has become.  ZIRP, QE, easy central bank money around the world are the factors moving real estate.  How long do you think they can maintain these heights when incomes are flat and aren't supportive of such prices?  Like the chart of home sales to median sales price that ZH puts out regularly which shows a huge divergence after the financial crash.  they will converge once again. 

Amish Hacker's picture

International money laundering on a grand scale, assisted by the National Association of Realtors.