Home Price Regression, Two Economists and Two Road Trips
According to Federal Reserve data, the median sales price of homes sold peaked in the final quarter of 2022, reaching $479,000 before rising mortgage rates brought them back down. But April's S&P CoreLogic Case-Shiller report, which tracks national home-price changes, came in above expectations at 0.53% from the previous month. On the surface, the data suggests prices are on the rise again. But a July 11 note from Goldman Sachs strategists suggests that any optimism stemming from this lagging indicator would be premature.
In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.
They discuss new checking and savings account data that shows Americans are better off now than before the pandemic, with nearly 10 to 15 percent more in their bank accounts than in 2019, despite new heights of inflation.
Chris and Saied look at data compiled by the research firm Equilar Inc., indicating that total pay for top Hollywood executives soared during the height of the pandemic to $1.43 billion in 2021, up 50% from 2018.
They also offer some thoughts on JPMorgan Chase & Co.’s Marko Kolanovic comments on the CPI for June, claiming that it has slightly increased the Federal Reserve’s chances of a “soft landing” — or taming inflation without triggering a downturn.
Join Chris and Saied for this fascinating and informative conversation.
Enjoy!
What You’ll Learn in this Show:
- Goldman Sachs' predictions that home price growth is regressing in certain key cities.
- Why a Nobel Prize-winning economist believes there's no need for the Fed to keep hiking rates.
- Why the Federal Reserve needs to look hard at Milton Friedman's monetarism.
- And so much more...
Resources:
"Nobel Prize-winning economist says there’s no need for the Fed to keep hiking interest rates" (CNBC)
"Americans are still better off, with more in the bank than before the pandemic" (The Washington Post)
"Here's how much Hollywood executives make" (LA Times via Instagram)
"JP Morgan’s Kolanovic Sees ‘Modestly Wider’ Path to Soft Landing" (Bloomberg)
