Case Study: How The Fed’s Overstimulus Is Driving Columbus Ohio’s Home Prices To The Moon! (18.6% In Q1 2022 Versus 6.15% In Q4 2019 Pre-Covid)

Earlier today, we saw that the Case-Shiller National home price index in March rose to its fastest rate in history.

Columbus Ohio is not covered by Case-Shiller in their 20-city index, but the FHFA’s home price index does. And in Q1 2022, home prices grew at a 18.6% YoY clip.

Before Covid and the march of The Federal Reserve (and Biden’s anti-fossil fuel orders), home prices in Columbus Ohio were only growing at a 6.15% YoY rate. So, thanks to The Fed, home prices in Columbus are growing at nearly 3 times the pre-Covid rate.

Here is the CS national home price index.

Let’s see how Columbus home prices do with US Treasury yields starting to rise 10+ bps again.

Case-Shiller National Home Price Index Still HOT In December +18.84% YoY As Active Inventories Die (Phoenix AZ Fastest Growing At 32.5% YoY While Washington DC Is Slowest Growing At 10.5% YoY)

The S&P CoreLogic Case-Shiller National home price index remained HOT in December, growing at a 18.84% pace. M2 Money YoY is still smoking at 13.11%.

All 20 metro areas in the Case-Shiller 20 index grew at 10% or higher YoY with my former home city Phoenix leading the way at 32.5% YoY house price growth. Washington DC, aka Mordor on The Potomac, was in last place at 10.5% YoY.

In terms of active inventory of housing, only Phoenix and Columbus Ohio are showing positive growth in active inventory YoY. But even Phoenix and Columbus saw a decline MoM (or month-over-month).

Including Existing Home Sales Active listings in the first chart, we see The Federal Reserve continuing to pump money at at 13.11% clip while active inventory is at an all-time low.

This is nuts.

US Home Prices “Slow” To +19.51% YoY In September (Phoenix AZ Sizzles At +33.1%, Chicago Slowest At 11.8%)

When I told Benzinga’s Phil Hall in an interview a while back that I thought US home price growth would slow, I didn’t consider the never-ending COVID epidemic (now with the Omicron Variant taking the stage. But at least the CoreLogic Case-Shiller National home price index (HPI) “slowed” in September from +19.84% to +19.51%.

Once again, low available inventory of houses for sale coupled with outlandish Fed stimulus has resulted in a housing crisis where home price growth (+19.51%) exceeds hourly wage growth (+5.76%) by almost 4x.

Where are all the home prices above 10% YoY? Every one of the 20 metro areas covered by Case-Shiller. Phoenix AZ leads at +33.1%. Chicago IL is the “slowest” at 11.8%.

Although Columbus OH is the growth hub of the state, Case-Shiller only reports Cleveland. So here is Columbus’s all-transactions home price growth for Q3: +16.2% YoY placing Columbus at the top of the midwest metro areas of Detroit, Chicago, Minneapolis and Cleveland.

With the latest Omicron Variation (sounds like a Star Trek TV show episode), I will bet that The Fed will stay a little longer and keep rates low, leading to home price growth (with limited available inventory) to continue to grow at double digit speeds.

The Fed is printing SOOOO much money that the dollar should have a double eagle on it.

US Home Prices Still Soaring! Case-Shiller National HPI UP 19.84% YoY In August As Fed Stimulus Remains (Phoenix AZ UP 33.31%)

Between The Federal Reserve’s unorthodox monetary policy and insane spending from Congress and Biden Administration, we are seeing a near 20% rise in home prices for August.

Please note that pre-COVID the Case-Shiller home price index (national) was growing at 4%. Thanks to Fed Stimulypto, home prices are roaring at near 20% YoY.

Phoenix AZ home prices are growing at a 33.31% pace. The slowest growing? The US “shoot ’em up” capital, Chicago, is growing at 12.72% and is the slowest growing Case-Shiller 20 city.

I feel like I am living in the movie “Cloverfield” with The Federal Reserve as the uncontrollable monster.

UPDATE: Columbus Ohio as of Q2 2021 is growing at a 13% YoY pace.