Counterparties

Halfway homes?

By Jordan Fraade
September 9, 2014

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The American housing market is looking better. That’s not entirely surprising, given that there was nowhere to go but up after the big bust of 2008. Some indicators — the number of housing starts, for instance — look quite healthy. But a team of researchers from the New York Fed, looking over a treasure trove of new data on the benefits and drawbacks of homeownership, have concluded that the divide between owners and renters is still one of the biggest fault lines in America.

More sensible homes

By Ben Walsh
August 26, 2014

U.S. housing prices fell 0.2% in June from May, the latest data from the Case Shiller index shows. Compared to June last year, prices were up 8.1%, but the pace of the increase is still slowing down. May’s numbers showed a year-over-year change of positive 9.4%.

MORNING BID – The economic state of things

August 1, 2014

The jobs report takes a bit of heat off of Thursday’s selloff, which was predicated in part on some nonsense out of Europe and more importantly some kind of growing consensus that the economy is getting hot enough that it might force the Federal Reserve to start raising rates a bit earlier than expected, given a sharp and unexpected rise in the employment cost index on Thursday. And while it’s fair to suggest the stock market has gotten a bit ahead of itself when the Fed is rapidly moving toward the end of its stimulus policies, it’s also possible that stocks have gotten ahead of themselves for a far more prosaic reason – the economy isn’t strong enough to support the kind of valuations we’re seeing in equities right now.

MORNING BID – Closet cases

July 10, 2014

Usually when retailers warn of earnings weakness – particularly if they’re saying the entire economy is in a funk – there are two possible explanations:

from Data Dive:

Housing on the rebound

June 23, 2014

Did someone say housing recovery? Existing home sales numbers for May were released this morning, handily beating economists’ expectations. Existing homes are now being sold at an annual rate 4.89 million units, up 4.9 percent month-over-month, Reuters reports. Forecasts had put the growth rate at only 2.2 percent. The number of properties on the market is also up, suggesting that the housing market is finally pulling out of its late 2013 slump.

from Data Dive:

Charting global real-estate bubbles

By Jordan Fraade
June 17, 2014

Wonder what house prices are doing around the world? Then take a look at the International Monetary Fund’s new Global Housing Watch project, which tracks global housing booms and busts. There are quite a few markets that are more inflated than ever. This chart from Matt O’Brien at Wonkblog ranks national housing markets by how much current price-to-rent ratios — that is, how much it costs to buy vs rent a similar property — deviate from the historical average.

Renters get owned

By Ben Walsh
December 19, 2013

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Housing market rising

July 24, 2013

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from Shane Ferro:

The dark side of homeownership

June 6, 2013

Owning your home, long a pillar of the American dream, could actually be bad for the economy. In a new paper, economists Andrew Oswald, of the University of Warwick, and David Blanchflower, at Dartmouth, found that rates of high homeownership lead to higher rates of unemployment in both the United States and Europe.