US existing home sales for April were released this morning and show a month-over-month decline of 2.7% from March with 5.85 million units sold SAAR.
Median price of existing homes sales rose to 19.1% YoY on staggering Fed stimulus and still super low inventory.
I can picture Atlanta Fed President Raphael Bostic screaming “Its economic growth, not inflation!!!”
Really? It smells like a bubble to me with average hourly earnings at 1.2% YoY.
A reader of my course notes said “lower income workers don’t buy houses” implying the current low wage growth is misleading. Well, wage growth is an indicator of labor market health. And it is not so healthy.