The housing market is suffering from Too Much Fed Stimulus!
The May Case-Shiller home price indices are out and they’re a doozy. The national home price index rose 19.75% YoY. Why? You can thank The Fed’s “slowhand” approach to withdrawing the Covid-related stimulypto.
Where are home prices booming? Everywhere.
Miami, Tampa, Dallas and Phoenix (red states) are growing at over 30% YoY. Boston, Chicago, Cleveland, Detroit, Minneapolis, New York, Portland and Washington DC (blue states) are all growing at over 10% YoY. Cleveland is a blue city in a mostly red state while San Diego is a red city in an almost blue state.
Jerome “Slowhand” Powell is not shrinking The Fed’s balance sheet.
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