Bankrupty Detroit Leads Case-Shiller House Price Growth For September (Followed By Southwest)

Confounded Interest ^ | 11/26/2013 | Anthony B. Sanders

[whitedog57]

The S&P Case-Shiller repeat sales house price indices were released this morning. The U.S. National Home Price Index rose 3.2% in the third quarter of 2013 and 11.2% over the last four quarters.

Call me crazy, but the recent expansion of house prices (red) looks faster than the rapid expansion during the housing bubble (orange). The recent rapid expansion of house prices coincides with the unprecedented monetary stimulus by The Federal Reserve.

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The big winner from August to September? Bankrupt Detroit! And in the LPS house price report from yesterday, bankrupt Modesto showed a good gain. Other winners in the monthly Case-Shiller derby? The housing bubble bursters Las Vegas, Phoenix and Los Angeles.

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Here is a chart of the Case-Shiller 20 metro house price index and The Fed’s Balance Sheet.

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Since it is Christmas season, it is appropriate to sing “It’s beginning to look a lot like … a bubble.”

Particularly when we compare the Case-Shiller house price index to real median household income.

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[whitedog57]

Yellen: "Repeat after me. There is no bubble."

[humblegunner]

Here is a chart

Where?

[Zuben Elgenubi]

So the scam continues. Bump up Detroit, take loans against the properties, off-shore the money and then default.

Housing bubble #2 is progressing well.

Time to take advantage of Bernanke/Yellens free money and make it disappear.

Just like those bags of cash disappered in Bagdad.

[KarlInOhio]

Now it costs $2 to buy a burned out husk of a building inside of Detroit. But if you buy it now it is guaranteed to shoot up to $4 by this time next year.

[crz]

Some body is going to get really rich. Just take a ride down I75 south of 8 Mile road and see all the blocks of burned out houses and empty lots. All it would take is a good developer to go in and clear off the whole dam thing and build.

Of course, the city would need some cash to run out the hood, which they will. Talk about riots! That would do the work the developers would have needed to do. They’d burn the rest of the run down houses and the developer can move in and start work.

[staytrue]

“Some body is going to get really rich. Just take a ride down I75 south of 8 Mile road and see all the blocks of burned out houses and empty lots. All it would take is a good developer to go in and clear off the whole dam thing and build.”

Yes and no.

Yes, because you can get cheap land, redevelope and sell for a lot especially since the corrupt detroit govt. has been mostly dismantled.

But no because eventually, the people of Detroit will probably reinstall a corrupt govt. again and the rebuilt stuff will be destroyed again.

So yes, build, sell and get rich, but no in the long run.

[crz]

What would the developer care after they have sold the homes and land they have built on? I wouldnt.
But to your point..if the rebuilt homes would be destroyed again, as a developer, I would welcome that. MO money.

[staytrue]

The point is you need to flip the properties before the bad old govt. gets back in.

So the timing must be good.

[crz]

Correct. But on the other hand, if enough power buys those properties, who are we to say that the bad old government gets in? Of course it is DEEtroit..