June 2021 housing data

Submitted by Rich Toscano on July 11, 2021 - 9:57pm
Inventory continued its barely-perceptible rise, and prices increased further. It continues to look like the peak of the frenzy has passed, but inventory remains very scarce.

Crazy stat of the month: the single family price/square foot increased 32% from a year ago! Incredible.

Graphs below.

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Submitted by deadzone on July 13, 2021 - 11:22am.

sdrealtor wrote:
No ever said SD wasn't well above the US average. That is your straw man. SD was not the hottest market in the country it was one of a bunch that typical outperform. Now it stands at the top of the mountain. There is a difference and you always seem to start the name around here so there's that too

I'm not arguing whether San Diego is or was top of the market. Point is San Diego, relative to US Average, was even more extremely out of whack in 2005 than it is now. That is to demonstrate that the premium, or "sunshine tax" or whatever you want to call it, was even higher in 2005 than it is now.

Submitted by Rich Toscano on July 13, 2021 - 11:41am.

Reality wrote:
Does anyone besides Deadzone agree that keeping interest rates low is affecting asset prices, including housing, a lot?

I absolutely agree with that. I think most would agree with that.

I also agree directionally with many criticisms of the Fed. Primarily, they don't care about asset bubbles. (They claim to, but they never actual admit when there's a bubble underway). And I think they taking a big risk keeping policy so loose given the obvious inflationary pressures (yes, they may be transitory... but nobody really knows that for sure, and if they turn out not to be, the Fed is boxing themselves into a very difficult situation).

Also, fwiw, I disagree with the "bullish" contingent on many things.

The issue isn't about whether interest rates matter, or being bullish or bearish. It's with the tenor of the posts, as I described.

deadzone wrote:
I'll respectfully disagree about my posts being garbage but the Piggington readers (what few are left) can make their own judgement.

Thank you for respectfully disagreeing! Now prove me wrong. Be respectful to others, and make it about discussing and learning, not ranting and repeating yourself.

sdrealtor wrote:
Outside of you and your doomer twin missed the boat also Reality...

Do you think that's a compelling argument or something? It isn't, it only undermines the rest of your argument. (Because why would you have to resort to such things if your actual argument was sound)? I've asked dz again, now I will ask you again to lay off the personal attacks.

Submitted by sdrealtor on July 13, 2021 - 12:32pm.

No problem and I agree as you do that keeping interest rates low is affecting asset prices, including housing. How could anyone argue with that? What I am focussed on is that while everything is going up everywhere some markets are outperforming. One of those markets outperforming to the highest degree is right here. My mantra is always about outperforming the averages. If it wasnt Id buy index funds

Submitted by deadzone on July 13, 2021 - 1:20pm.

I think most of us agree on at least 90% of these topics. Me and sdr only disagree on the more subtle points but it is his condescending style and insults that cause the rub.

sdr's main contention is SD has become more popular RE destination than even before. I don't know that he is wrong, but there is not enough evidence long term to prove this yet. And as I've pointed out, SD RE has been more inflated than today relative to the US average which is clearly seen on the Case Shiller chart around the 2005 timeframe. So this remains to be seen and we won't know the answer for sure until some years down the road.

Regarding inflation, I don't understand how there can be any deniers on this. I see crazy price increases in both personal and business purchases this year like I've never seen. And to avoid raising interest rates or federal COLA, the Fed Chair invented the work "transitory" to justify continued asset purchases (ie QE infinity). Seriously, maybe I'm backward but I've never heard anyone use the word "transitory" prior to Powell. Now the media uses it all the time like it is a normal thing just like they've convinced us it is normal for the Fed to print money to buy financial assets in the first place.

Submitted by sdrealtor on July 13, 2021 - 2:26pm.

Do or do not. There is no try

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