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Texas Realtors Unwittingly Paying For Bad TAMU Economic Research

Texas Realtors are paying for some bad economic research. That’s the only conclusion I can come to after looking at the current situation where highly educated economists are giving short shrift to the underlying causes of Texas home price inflation and market distortions. While the Fed has abdicated its responsibility to the American public, TAMU economists seem to be cooperating …

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Texas Housing Market Meets The Fed’s ‘Game of Thrones’ Economy

The latest issue of Tierra Grande is out, and it contains more examples of the Federal Reserve’s fingerprints on the Texas housing market. This new batch of evidence is contained in an article titled ‘Game of Homes – The Supply-Demand Struggle’. What is thoroughly entertaining is that the two Dallas Fed employees (both recent college graduates apparently) working on this …

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NAR: Existing Home Sales Fizzle In February As Affordability Evaporates

The National Association of Realtors reported that existing home sales fizzled in Februrary, falling to a seasonally adjusted annual rate of 5.08 million. This was a sharp decline from January numbers but 2 percent higher than a year ago. NAR’s chief economist, Lawrence Yun, mentioned the stock market, poor weather on the East coast, as well as supply and affordability …

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Katy Texas Real Estate Market February 2016

Home affordability is getting stretched in the Katy area, and home sales are stagnating as a result. Houston home sales were essentially flat in February when you adjust for the leap year in 2016 with an extra day of closings. That means sales should have increased by at least 3.5 percent to post any adjusted YoY gain. Current posted MLS …

Affordability Crisis: Rising Apartment Rents Amid Stagnant Incomes

I ran into a Realtor colleague earlier this morning, and she asked me what I thought of the current real estate market.  She probably regretted asking since I told her my honest opinion about the shenanigans currently playing out in the markets. Like many Realtors (and much of the U.S. population), this particular individual hadn’t given much thought about what …

“Re-Assessing” And Miscalculating Houston’s Housing Affordability

I was browsing articles this morning, and came across a piece in the Houston Chronicle that caught my attention because the headline mentioned affordability.  Affordability metrics are often cited by Realtors and media pundits to show that houses are still cheap and affordable, thus you should run out and buy a home. The problems is, many of those “affordability” measures …

Yellen Ignores U.S. Housing Affordability Gap

Speaking today at the “Economic Outlook”, our newest iteration of Fedspeak offered her first version of the Humphrey-Hawkins tap dance.  In her testimony, Yellen called for a continued low-interest-rate environment, as though ZIRP was somehow going to heal the labor markets when we all know that’s a steaming pile of scatology put forward to justify the status quo.  Janet Yellen, just like …

Mortgage Purchase Applications Still At 1993 Levels

The MBA’s index of mortgage purchase applications dipped slightly from last week, falling one percent.  This is after a 2 percent gain in the previous week.  As Anthony Sanders notes, the mortgage purchase application index is still hanging around 1993 levels.  Part of the reason for the sluggish growth is that real owner-occupied purchases have stagnated with diminished affordability.  Las Vegas …