The Funniest Chart From Today's Case-Shiller Update

Moments ago we got the latest update out of Case-Shiller's composite home price index for the Top 20 US cities in May, or before rates soared and crushed all housing activity sending home affordability some 30-40% lower, which missed at the top line rising 1.05% sequentially, down from a 1.73% increase and missing expectations of a 1.40% increase (and with the annual price growth of 12.17% also missing expectations of a composite 1.40% increase).

But perhaps no other chart does more justice to the actual underlying factors (read institutional investing in distressed properties with the aim of converting them into rentals using FHFA-backed REO-to-Rent subsidies, as well as banks keeping REO and foreclosed inventory on their books) pushing prices higher, than the following chart indicating soaring home prices.

Guess which city this "data" represents:


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Give up yet?


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Here is the answer:

It appears that in the New Normal there is no better catalyst than a city bankruptcy to send home prices 20% higher...