Home Prices Rise At Fastest Pace In 15 Years

Year-over-Year prices are up 11.19%. That’s the highest annual rate of growth since February 2006.

Case Shiller Composite Index Chart

Case Shiller Composite Index Chart

Home Prices Year-Over-Year

Home Prices Year-Over-Year Chart

Home Prices Year-Over-Year Chart

Let’s step back a bit to see when and how these bubbles started.

Home Prices 2000-Present

Home Prices 2000-Present

Home Prices 2000-Present

Note the acceleration in home prices that started in 2000.

It reflects then Fed Chair Alan Greenspan goosing the stock market over Y2K fears, then accelerating the bubble with low interest rates fueling the housing bubble that collapsed in 2006.

Fed Chairs Ben Bernanke, Janet Yellen, and now Jerome Powell all employed the same tactics to goose housing and the stock markets.

In Search Of Inflation

Powell wants inflation. He cannot see what is right in front of his nose. But the Fed does not consider home prices as inflation.

I will do a follow-up to this post calculating real interest rates which are behind the booms and the busts.

Original Post

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

This site uses cookies to offer you a better browsing experience. By browsing this website, you agree to our use of cookies.