Housing: prices follow sales, February 2020 edition One of the consistent things I have written about the housing market for going on 10 years is that interest rates lead sales, and sales in turn lead prices. Last week with the continued increase in housing starts and permits we got further proof of the former, and this morning with the release of several house price indexes, we got further proof of the latter. Below I show the FHFA house price index (blue), Case Shiller national house price index (green), and housing permits (red, /4 for scale). Because prices are seasonal, I show all of these metrics YoY: The trough for permits YoY was last March. The trough for both the FHFA and the Case Shiller indexes was last August. The YoY change increased m/m
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NewDealdemocrat considers the following as important: US/Global Economics
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Housing: prices follow sales, February 2020 edition
One of the consistent things I have written about the housing market for going on 10 years is that interest rates lead sales, and sales in turn lead prices. Last week with the continued increase in housing starts and permits we got further proof of the former, and this morning with the release of several house price indexes, we got further proof of the latter.