Markets (stock + housing) starting to tank?

senseamp

Lifer
Feb 5, 2006
35,787
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https://www.marketwatch.com/story/h...wn-in-recent-weeks-redfin-ceo-says-2018-08-09
The housing market hit a sudden and “significant” slowdown in the past few weeks that could continue in coming months, Redfin Corp.’s chief executive said Thursday afternoon.
Definitely seeing it in Silicon Valley, lots more inventory and significant price decreases already from admittedly crazy spring.
But now we are seeing it trickle into stock markets big time. Also, inflation adjusted real wages are dropping despite enormous deficit spending fiscal stimulus being pumped in.
https://www.washingtonpost.com/busi...entirely-by-inflation/?utm_term=.a8a720f55730
Cost of living was up 2.9 percent from July 2017 to July 2018, the Labor Department reported Friday, an inflation rate that outstripped a 2.7 percent increase in wages over the same period. The average U.S. “real wage,” a federal measure of pay that takes inflation into account, fell to $10.76 an hour last month, 2 cents down from where it was a year ago.
This is all before big tariffs hitting the fan and raising prices of everything. Then we are going to see real stagflation. Not good.
 
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Blackjack200

Lifer
May 28, 2007
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https://www.marketwatch.com/story/h...wn-in-recent-weeks-redfin-ceo-says-2018-08-09

Definitely seeing it in Silicon Valley, lots more inventory and significant price decreases already from admittedly crazy spring.
But now we are seeing it trickle into stock markets big time. Also, inflation adjusted real wages are dropping despite enormous deficit spending fiscal stimulus being pumped in.
https://www.washingtonpost.com/busi...entirely-by-inflation/?utm_term=.a8a720f55730

This is all before big tariffs hitting the fan and raising prices of everything. Then we are going to see real stagflation. Not good.

I assume we've been running a budgetary surplus and chipping away at the national debt in case we needed fiscal stimulus.

Now to take a big sip of coffee and look at the news for the last couple of years...
 
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fskimospy

Elite Member
Mar 10, 2006
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Rates are climbing. That’s it in a nutshell.

While I broadly agree with you it's interesting to see that while mortgage rates are significantly higher than 12 months ago they aren't really up as compared to 6 months ago.

fredgraph.png
 

repoman0

Diamond Member
Jun 17, 2010
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Lots of price cuts and nice houses sitting on the market here too. I just noticed the other day browsing Zillow. Three months ago the rule was open houses Friday through Sunday, offers due Tuesday, owner picks the best/highest from 5-8+ candidates.
 
Feb 4, 2009
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I’m a realtor and markets vary, my market still has multiple offers within the first week of all realistically priced homes.
 

vi edit

Elite Member
Super Moderator
Oct 28, 1999
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Some housing markets are inventory restricted. Zoning laws are preventing new housing/multi-dwelling housing and demand is simply higher than supply.