Posts filed under “Real Estate”

Chart of the Week: Actual Housing Costs (w/o BLS Adjustments

Before 1983, CPI measured housing inflation by looking at
what it cost to own a home (house prices, mortgage, property taxes). After 83,
BLS changed the housing component, using the concept of Owner’s Equivalent
Rent. Revert back to the true cost of housing, and Core CPI spikes to a more
realistic 5.3%.

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Actual Housing Costs (w/o BLS Adjustments)

Ofheo_chart_tim_i

Source: Tim Iacono

BLS perversely lowers Owner’s Equivalent
Rent
further as utility costs go up: “CPI calculated the pure rent of the
matched renters by removing the value of any landlord-provide utilities.”

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Quote of the Day:

"Failure is a part of success. There is no such thing as a bed of roses all
your life. But failure will never stand
in the way of success if you learn from it."
~ Hank Aaron

Category: Economy, Inflation, Real Estate

Back Out Housing Adjustments, and Core CPI = 5.3%

Category: Economy, Inflation, Real Estate

Chart of the Week: Bloomberg REIT Index

Category: Investing, Real Estate

Insolvency Epidemic

Category: Economy, Real Estate

Polling Homeowners (they do not have a clue)

Category: Economy, Real Estate

Manufacturing versus Real Estate

Category: Economy, Real Estate

Housing Market Gives Cooling Sign

Category: Economy, Financial Press, Real Estate

Global Investors Gobble Up Mortgage-Backed Securities

Category: Financial Press, Real Estate

Forbe’s: Awaiting Housing’s Big Chill

Category: Economy, Real Estate

Real Estate’s Wall of Worry

One of the odder aspects of the so-called housing bubble phenomenon is how so many pundits have been so self-confident in their declarations of bubbleosity. I find that somewhat ironic — the same people who missed the largest stock bubble in human history have now become expert in spotting bubbles. And they now are spotting…Read More

Category: Markets, Psychology, Real Estate