housing market

Real Estate Perfectly Sums Up The Rate Cuts

By |2019-07-24T17:33:19-04:00July 24th, 2019|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

It’s only a confusing when you just accept the booming economy of the unemployment rate. From this perspective, 2018 was, and more so 2019 is, a downright conundrum. By all mainstream accounts, this just shouldn’t be happening. Home sales are running at a pace similar to 2015 levels – even with exceptionally low mortgage rates, [...]

What Does It Mean That Real Estate, Not Equities, Is Driving Monetary Policy?

By |2019-07-23T18:31:49-04:00July 23rd, 2019|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

In the world of assets classes, I don’t believe it is equities which hold the Federal Reserve’s attention. After the 2006-11 debacle, the big bust, you can at least understand why policymakers might be more attuned to real estate no matter how the NYSE trades. It may be a decade ago, but that’s the one [...]

Economic Report: New Home Sales

By |2009-03-25T11:19:41-04:00March 25th, 2009|Markets|

Sales of new homes in the US rebounded off their lowest levels on record in February, after a lackluster January in which sales were initially down over 10%. Sales jumed by 4.7% to a seasonally adjusted annual rate of 337,000 units, up from January’s initial estimate of 309,000, which was revised to 322,000 in today’s report. Despite the revision, January’s [...]

Economic Report: New Home Sales

By |2009-02-26T12:28:45-05:00February 26th, 2009|Markets|

Sales of new homes in the US declined to their lowest levels on record, after a lackluster January in which sales fell by a stomach-wrenching 10.2%. Sales fell to a seasonally adjusted annual rate of 309,000, the lowest ever since the series began in 1963. The report was below expectations, as economists were predicting a number closer to 320,000. In all of [...]

Nothing New Here…Move Along

By |2009-02-23T11:26:04-05:00February 23rd, 2009|Markets|

The stock market is now back near its November lows and the pessimism is as thick as a copy of Keynes General Theory. The “stimulus” package has been deemed either insufficient or overkill depending on your political persuastion, but certainly not stimulating. The joy over the selection of Timothy Geithner as Treasury Secretary has faded [...]

Why We Shouldn’t Prop Up Housing Prices

By |2008-12-04T19:32:52-05:00December 4th, 2008|Economy|

The quickest way to clear the inventory of unsold homes is to let prices fall to the market clearing level. If the goal is to get through this as quickly as possible, we shouldn’t do anything that props up prices. That will just extend the time it takes to reach the point where builders can [...]