FINSUM + Magnifi: House Prices Are Skyrocketing and the Government Isn’t Watching

Magnifi in Action: Discover "Funds with Exposure to Real Estate "

Click on any fund in the chart below to dig deeper.

June 14, 2021

The latest CPI numbers have made a splash once again as prices make some of the fastest paces in growth since 2008. Home prices have contributed to that, as housing costs rose by 0.4% in May and up 2.2% from the previous year. However, for the average household, these numbers are completely out of whack. According to the Nobel prize-winning Robert Shiller, the Case-Shiller home price index is up over 13%. The CPI views the house as a capital investment and doesn’t think of them as consumable goods, and narrowly looks at implicit rental rates. Improvements or house costs themselves aren't valued in the CPI. Don’t rely on the CPI as a gauge of the housing economy or the housing market. Real price inflation in housing has cascading effects on the economy.

(Miami)

 

FINSUM + Magnifi: Many homeowners or renters are cash-strapped and burdened by rental rates. Real inflation in this market could be a slowing sign for the aggregate economy as house price inflation consumes their budgets.

Other news today: The Bond Market Has a Big Correction Looming and This May Be the Biggest Muni Boom in History
 


New call-to-action

Magnifi is changing the way we shop for investments, with the world’s first semantic search engine for finance that helps users discover, compare and buy investment products such as ETFs, mutual funds and stocks. As of June 2021, 380,000+ users with $534+ Billion in Assets Under Influence, have used Magnifi over 3,800,000 times. Try it for yourself today.

 

This blog is sponsored by Magnifi. The information and data are as of the publish date unless otherwise noted and subject to change. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. [As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide brokerage or custody services.]