US Home Prices Rise At Fastest Pace In 3 Years To Record Highs

Tyler Durden's picture

US home prices (in the 20-city Case-Shiller universe) rose at 5.89% YoY - the strongest growth since July 2014.

This has pushed the national home price index to new record highs...

 

Perfect time to hike rates and deflate yet another bubble?

The 3-6 month lag effect of rate moves on home prices is looming.

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HominyTwin's picture

I remember when Ocean Beach was beach bums, bikers, beer, and greasy pizza. A nice "beach vacation" for people without a lot of money. Good times.

Back then, I thought my friends were crazy for living there because of high prices, but it was nothing compared to now. Bat shit fucking crazy.

asteroids's picture

$11M for a beach shack? Ha Ha Ha Ha Ha........

BullyBearish's picture

well that makes sense as wages are at all time highs too!

Sonny Brakes's picture

Of course, housing prices keep rising because the banks won't finance the deal unless the prices keep rising. How would it look if prices began to contract? It's not magic it's an illusion.

shizzledizzle's picture

Closing on 30 beautiful acres Wednsday. Half pasture, half woods with 3/8 a mile of creek frontage with world class smallmouth fishing. Gonna build a shop on it with 1/2 living quarters and 1/2 tools and machining equipment.

Enjoy your over priced city life. 

Antifaschistische's picture

everyone is discovering that the secret to wealth and financial independence is to flip homes using someone ELSES money.   it's a no-way-you-can-possibly-lose investment strategy.   thousands of people are flocking to seminars every weekend to learn these awesome techniques.

 

WakeUpPeeeeeople's picture

Can't lose money as in heads I win, tails you lose.

The Real Tony's picture

As people search for alternate investments to stocks (which shoudl fall about 80 percent) a lot of money has gone into residential real estate.

William Dorritt's picture

Blackstone and others buying Houses by the thousands via the Govt for Rentals and maybe large Mortgage Holders selling blocks at discounts

adr's picture

The only people who will have houses soon are those that don't work and get one from the government.

AWESOME!!!!

Way to go Wall Street.

chubbar's picture

Blow off phase?

GodHelpAmerica's picture

Even builders know these prices don't make sense in terms of NPV. In many areas sales are significantly down yoy but prices are up bc inventory is low.

This is dumb consumers again, being enabled by FHA loans. Both the consumers and government are using pie in the sky income progections. What could possibly go wrong?

Never mind the fact that property tax costs are a function of the home price; so even if your rate remains constant your property tax costs continues to rise! Feeling wealthy yet?

I am Jobe's picture

Most are not logical as you are. Till then this is the backyard chat with the neighbors and how they rich they feel. Conversations discount realism,

I am Jobe's picture

Higher property taxes is good. Winning. Long on Homelessness, eminet domain and foreclosures. Ah the dream 

ptoemmes's picture

The contrarian data, both "positive" and "negative", not only within a "market" but just across the whole freaking earth reminds me of: https://www.youtube.com/watch?v=YHZrp20Aco4

 

Except the sound.

William Dorritt's picture

THE FAKE ECONOMY

 

Student Loan fake economy bubble is now at $1.3Trillion

Car Junk sub-prime loan Bubble has run it's course. 

Are the "smart Investors" pumping Billions into a RE bubble for a pump and dump?

Probably, Housing is selling at 2x it's historic value above Income.....so no one can afford a loan above 2%

ThanksIwillHaveAnother's picture

JHC...The FED is not raising the Fed Funds Rate it is raising the Interest Rate on Excess Reseves which gives more money to banks (another form of QE).   The FED balance sheet is stll at ~4.5T.

Kefeer's picture

Wait - other and a majority of ZH stories as of late have talked about home prices "Crashing" - I'm confused.

PitBullsRule's picture

Here's what we know, the vast majority of you Zero Head commentors have been bearish on houses for years.  House prices are at an all time high.  That can ONLY mean that you guys have been DEAD WRONG.  

That makes you contra-indicators.

...and you guys all like Trump.

HominyTwin's picture

Well, what are you doing here? Go flip some houses, if it's up, up and away from here.

1033eruth's picture

Going to be a ridiculous number of people underwater again in a couple of years.  

As a nation, we learned zippo from the last credit/real estate bubble pop.  Absolutely zippo.

adr's picture

If property taxes increase at the same rate as they did over the past ten years, my taxes went from $1800 to $4200 from 2009-2017, you could be looking at a yearly property tax bill greater than your mortgage payment with interest in traditionally lower tax rate areas. I don't want to think of New Jersey.

When it costs $1000 a month in taxes to live in your home because of public sector pensions, will people finally revolt?

Fuck the retired teachers, cops, and firemen. You paid $20k in 20 years towards your pension. For some public sector retirees, that is one month of pension payments.

 

Consuelo's picture

 

 

 

+1

 

What does the 'Constitutional expert' Mark Levin say at the end of his radio program every day...?

 

"we salute our armed forces, police officers, fire fighters, and emergency personnel"

 

On the other hand, I salute:

 

The thousands of small/medium-sized businesses whose $tax & regulatory burden makes saluting the aforementioned possible...

ElTerco's picture

The assessed value can increase a maximum of 2%/year in California. It will take over 34 years for my property tax to double.

Also, anyone 55 or over can move to a new home of equal or lesser value within California and keep their property tax basis from their old home.

InnVestuhrr's picture

The market value of my summer home, in a very popular lifestyle and retirement community, went from $360K to $460K in 2 years :-))

CultiVader's picture

You're back? Go count your treasuries.

InnVestuhrr's picture

HA !!!!!!!

I have accountants who count them for me !

BTW, trading treasuries from Sept 2015 thru Jun 2016 yielded the largest capital gains of any trade in my life, PLUS i received interest income.

  Thank You