Posted on 01/20/2023 7:38:47 AM PST by Kaiser8408a
The Thrill Is Gone from the US housing market as M2 Money growth fells to 0%.
US Existing Home Sales fell -1.5% from November to December (MoM) to 4.02 SAAR units sold. That translates to a depressing -34% decline since December 2021 (YoY).
On the positive side, these numbers are better than expected (-3.4% MoM expected). Still, these numbers are pretty dismal.
Existing home sales MEDIAN PRICE fell to $366.9k as M2 Money growth vanishes. And inventory of existing homes for sale remains lower than pre-Covid levels.
Let’s see what Powell and the Gang (aka, The Federal Reserve Board of Governors) does with interest rates going forward.
(Excerpt) Read more at confoundedinterest.net ...
Build back better!!!
Every time there’s good news we get these agonizing headlines acting like it’s bad.
Inflation is dropping and housing is correcting in an orderly fashion. Stop screaming.
Technically, the Quantity Theory of Money says that the money supply needs to grow at the same rate as real economic output. That is, MV = PQ, where M is the money supply, V equals the velocity of money, P is the price level, and Q is real output. Since V is fairly constant over time and we’d like to see stable prices, money growth should be growing at the same rate as real output. The fact is, P is growing at over 8% but the Fed is holding M constant. To keep things in balance, this must mean the Fed sees negative real economic growth in the short run. This should prove to the idiots who support Biden that this clown’s economic policies don’t work.
We could all use more M & less P, for sure.
The fed’s more concerned about inflation than about housing sales. Works for me.
The thrill is still here in Atlanta.
Can’t be, the liar in chief said it’s the best it’s ever been.
Well my fixed rate Mortgage went up $90 per month over six years. That’s based on Insurance increases and County appreciation assessment. It just went down $30 a month starting in two weeks for the next year.
They can’t build back better yet.
They are not through destroying.
Once the destruction is complete, then comes the build back better part.
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