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IPFS News Link • Housing

Home Prices In Every Major City Jump More Than Double The Fed's Inflation Target

• https://www.zerohedge.com by Tyler Durden

One month ago, we looked at the housing market which we said was in the middle of a buying "frenzy." Today's Case-Shiller data for September confirmed this, with the 20-City Composite index surging at a stunning 6.6% Y/Y more than 1% higher than August (and smashing expectations of a 5.3% print), and the highest in 30 months.

But the real shocker was looking at the component cities that make up the composite index. Here, not only is the housing bubble clearly back in certain Western cities such as Phoenic, Seattle, San Diego and LA, all of which posted a 9.5% or higher increase in annual home prices, but more remarkably even the lowest increase - that of New York - was no less than 4.3% (up from 2.8% just last month).

This means that every major US city saw home price increases that were more than double the Fed's stated 2% inflation target (although under the new Average Inflation Targeting, the Fed's so-called target is a fluid number and can be whatever the Fed decides it is).


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