The greenback misplaced buying energy close to homes on the quickest price in six years.

By Wolf Richter for WOLF STREET.

Costs of single-family homes jumped 8.4% within the US, the most important year-over-year leap since March 2014, in response to the Case-Shiller Home Price Index for October, launched right now. The index relies on the “gross sales pairs” technique, evaluating the worth of a home that bought within the present month to the worth of the identical home when it bought beforehand, going again a long time. By comparability, the Nationwide Affiliation of Realtors’ home worth index, which relies on “median costs,” has skyrocketed 15%. On this horrible economic system with 9 million to twenty million folks out of labor, home costs have been fired up by report low rates of interest, the $3 trillion the Fed has handed the markets, the shift of working from dwelling and never eager to reside in an house or apartment tower, and by a dose of panic-buying.

Los Angeles – essentially the most splendid housing bubble of all of them:

Home costs within the Los Angeles metro rose by 1.1% in October from September and by 8.4% year-over-year, which put them 14.1% above the height of the insane Housing Bubble 1. The Case-Shiller index was set at 100 for January 2000 throughout all 20 cities it covers. Right this moment’s index worth for Los Angeles of 312 signifies that home costs within the metro have greater than tripled since January 2000 (+212%), making it essentially the most splendid housing bubble on this checklist.

Right this moment’s launch of the Case-Shiller Residence Worth Index, named “October,” is a rolling three-month common of closings that have been entered into public data in August, September, and October.

The Case-Shiller Index gives sub-indices for some cities. For Los Angeles, along with total home costs, it gives information on condos, and for high-, mid-, and low-tier home costs.

Costs within the low-tier phase (black line) jumped 10.4% year-over-year and have almost quadrupled since January 2000 (+281%). Throughout Housing Bubble 1, this phase surged essentially the most, and throughout the Housing Bust, it collapsed essentially the most (-56%). Excessive-tier costs (inexperienced line) jumped 8.0% year-over-year and are up 188% from January 2000. Apartment costs (purple line) have been rising on the slowest price of the 4 classes (0.5% month-over-month and 5.0% year-over-year):

San Diego:

Home costs within the San Diego metro jumped 1.7% in October from September and by 11.6% from a yr in the past, having almost tripled (+193%) since 2000:

That is “Home-Worth Inflation”: The Greenback misplaced buying energy sooner.

The Case-Shiller Index – by evaluating the gross sales worth of a home within the present month to the worth of the similar home when it bought beforehand – tracks the quantity of {dollars} it takes to purchase the identical home over time, thereby measuring the buying energy of the greenback close to homes. This makes the Case-Shiller Index a measure of “house-price inflation.” And what we’re is the phenomenon that the greenback has misplaced buying energy close to homes on the quickest price in years.

San Francisco Bay Space:

The Case-Shiller Index for “San Francisco” – the Bay Space counties of San Francisco, San Mateo (northern a part of Silicon Valley), Alameda and Contra Costa (East Bay), and Marin (North Bay) – rose 0.9% in October from September and was up 7.7% from a yr in the past. The index is up 50% from the loopy peak of Housing Bubble 1 and has almost tripled since 2000:

San Francisco Apartment Malaise:

However apartment costs within the five-county Bay Space fell for the fifth month in a row and are down 2.3% from a yr in the past, and beneath the place they’d first been in March 2018, amid a historic all-time record condo glut in San Francisco itself:

Seattle:

Within the Seattle metro, home costs jumped 1.1% in October from September and 11.7% year-over-year, having surged 47% for the reason that peak of Housing Bubble 1:

New York metro condos:

To not be confused with Manhattan condos that are now undergoing a reckoning, Case-Shiller’s index for New York Metropolis condos consists of all of New York Metropolis plus quite a few counties within the states of New York, New Jersey, and Connecticut “with vital populations that generally commute to New York Metropolis for employment functions.” In these huge and numerous markets, the index for condos has basically been flat since late 2017 and is down a smidgen year-over-year and from the height in October 2018:

Miami:

The Case-Shiller index for the Miami metro jumped by 1.5% in October from September and by 6.8% year-over-year, pulling inside 6.1% of its completely loopy peak of Housing Bubble 1:

Portland:

Home costs within the Portland metro rose 0.7% in October from September and eight.9% from a yr earlier:

Washington D.C.:

The Case-Shiller Index for the Washington D.C. metro rose 1.3% in October from September and was up 8.2% year-over-year and thereby lastly surpassed the loopy peak of Housing Bubble 1, hallelujah:

Boston:

The index for the Boston metro rose 1.5% in October from September and 9.4% year-over-year:

Tampa:

Home costs within the Tampa metro rose 1.6% in October from September and eight.6% from a yr earlier, and at the moment are 1.6% above the loopy peak of Housing Bubble 1:

Denver:

The index for the Denver metro rose 0.9% in October from September and seven.0% year-over-year:

Phoenix:

For the Phoenix metro, the index rose 1.7% in October from September and 12.7% year-over-year, making it the market with the at the moment hottest home worth inflation on this checklist of Splendid Housing Bubbles, forward of San Diego (11.6%) and Seattle (11.7%). And costs virtually caught up with the loopy peak of Housing Bubble 1:

Las Vegas:

The index for the Las Vegas metro rose 0.8% in October from September and 6.4% year-over-year, however stays 12% beneath the loopy peak of Housing Bubble 1:

Dallas:

Home costs within the Dallas metro – counties of Collin, Dallas, Delta, Denton, Ellis, Hunt, Johnson, Kaufman, Parker, Rockwall, Tarrant, and Smart – jumped 1.4% in October from September and 6.5% year-over-year, having greater than doubled since 2000.

This makes the Dallas metro the tail gentle of the Most Splendid Housing Bubbles in America, with the remaining markets of the 20-Metropolis Case-Shiller Index not having reached that time but the place it takes over twice as many {dollars} to purchase the exact same home than it took 20 years in the past.

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