Skip to comments.Ben & Janetís Swell Housing Recovery: Sales Booming For The 1%; Heading Down For Everyone Else
Posted on 05/30/2014 4:35:36 PM PDT by Lorianne
The absurd deformation evident in the latest data on housing bubble 2.0 sticks the fork in monetary central planning. In the attached post, Wolf Richter provides a succinct display of existing home sales on an April YTD basis versus prior year for 30 major markets. The pattern is stunning: Among homes sold to the top 1% of households, volume is up by 20-100% in most markets. By contrast, transaction volume during the last four months was down for the entire remaining 99% of the market in 26 out of 30 cities. And the bottom 99% volume was off by double digit amounts in places like Phoenix, Orange County and Los Vegas.
Moreover, a quick peruse of the chart shows that the pattern of soaring volume among the 1% is not just a regional aberration owing to the social media and technology stock boom in the San Francisco Bay area. Volume of top 1% home sales on Long Island, for example, was up by 72% during the first four months of 2014bad winter weather notwithstanding. Contrariwise, volume among the less well insulated 99% of Long Island home buyers actually dropped below prior year levels.
Likewise, it is always cold during January-April in Minneapolis and this year was apparently no exception. So it is not the weather factor which explains the 50% gain among top 1% home transactions there versus a 13% decline in transactions among the 99%.
No, it was not an artic blast coming down from the polar north that explains the pattern below, but the financial storms emanating from the Eccles Building on the Potomac.
(Excerpt) Read more at davidstockmanscontracorner.com ...
Ben dumped Jerry for Janet?
As we Baby Boomers go away over the 20 years or so to come, prices should fall for as long. One might suspect that at least in many areas, prices are artificially propped up to keep property taxes high.
High dollar homes are selling. The rich are getting richer and the poor are getting poorer. Nothing political about that fact.