Mish's Global Economic Trend Analysis |
- High-End Property Slowdown in Maryland and Texas: Where Next?
- Export Prices Unexpectedly Collapse, Led by Agriculture; Non-Petroleum Import Prices Sink Most Since October 2009
- Sorting the European Far Left from the Far Right: 10 Comments - Can You Tell Left From Right?
High-End Property Slowdown in Maryland and Texas: Where Next? Posted: 09 Oct 2015 12:52 PM PDT Correction: In what follows, I said initially said Virginia when I meant Maryland. Title and all references to Virginia corrected to Maryland. The person I quoted below said "MD" but somehow I spelled it out as Virginia. Apologies offered. In response to Chicago Suburbs $1 Million+ Home Sales "Not Totally Dead" Yet; Rush for the Exit, I received emails from Maryland and Texas about slowdowns in those states. Anecdotes do not constitute "data" but all three stories (counting Chicago) show significant weakness at the high-end in widely varying areas with distinct economic backdrop differences. Paul from Maryland Mish, I live in the Howard County, Maryland. It's the 4th wealthiest county in the US. We recently had a presentation by a Realtor on the state of the market. It's still a very strong seller's market in the $600K and below range. Inventory is around 2.5 months on a 3 month rolling average basis.Aaron From Texas Hello Mish,Oh Those CADs I gave Aaron a call. "CAD" stands for County Appraisal District. It seems the CADs go way out of their way to appraise business property low and home prices high. They can get away with it because sale prices are not disclosed. Aaron has his own real estate business and a blog. He wrote about the Schlumberger deal recently in Sugar Land Homeowners Get Steamrolled. In a second email Aaron wrote ... Hi Mish,Sugar Land vs. Sugar Town That's the kind of honesty that's going to get an endorsement from me. If you are in the Texas energy belt looking to buy or sell, Aaron appears to be a good source. I had mistakenly referred to Sugar Land as Sugar Town in one of our email exchanges. Thus the correction, with an accompanying musical Tribute Link if video does not play: Nancy Sinatra - Sugar Town 1967 Where Next? High-end rot is apparent in Howard County Maryland, the Texas energy belt, and Chicago suburbs. Where's the next high-end bust? I actually suspect they are happening all over the place. And if so, recall my earlier statement that the economy rots from the periphery to the core but home price rot starts at the high-end and works its way lower. I propose housing is not as strong as the bulk of economists believe it is. Mike "Mish" Shedlock |
Posted: 09 Oct 2015 09:07 AM PDT Economists expected export prices to drop by 0.2%. Instead they fell 0.7%, outside the range of any Econoday Import/Export Estimate. A bounce back for petroleum prices helped to limit import-price contraction in September, coming in at only minus 0.1 percent. But contraction in export prices, where agriculture and not petroleum is the wild card, was very heavy, at minus 0.7 percent in the month. Year-on-year rates are very weak, still in the double-digits for imports at minus 10.7 percent and at minus 7.4 percent for exports.Welcome Rise Once again, the economic cheerleaders are praising price inflation. Bear in mind, this same group of cheerleaders have said all along that falling oil prices were a good thing because consumers would spend the money elsewhere. Thus, falling oil prices are good, and so are rising oil prices. Do these people read what they write? Off the Chart - Import Prices Import prices are now down 14 consecutive months, year-over-year, literally "off the chart" as shown from the BLS Report on Import/Export Prices. The last time year-over-year import prices rose was for the 12-month period ending July 2014. Off the Chart - Export Prices Year-over-Year export prices are also "off the chart", albeit for one month less. Prices for U.S. exports fell 0.7 percent in September, following a 1.4-percent drop the previous month. Falling agricultural and nonagricultural export prices each contributed to the September and August declines. The price index for overall exports fell 7.4 percent over the past year, the largest year-over-year decrease for the index since an 8.3-percent drop for the 12 months ended July 2009. Agricultural export prices declined 1.1 percent in September, after falling 2.5 percent in August. The decrease was mostly the result of an 8.3-percent drop in soybean prices, although a 4.3-percent decline in nut prices also contributed to falling export agricultural prices. The price index for agricultural exports decreased 13.5 percent for the year ended in September. Declining prices for meat, soybeans, and wheat over the past year primarily drove the drop. Soybeans Live Cattle Word About "The Unexpected" One might think that economists estimating export prices would be following the price of grains, soybeans, cattle, etc. Do they? Or do they just pull guesses out of the air? Mike "Mish" Shedlock |
Sorting the European Far Left from the Far Right: 10 Comments - Can You Tell Left From Right? Posted: 09 Oct 2015 07:57 AM PDT In recent speeches in European parliament, press articles, or tweets can you tell whether the listed statements below were from the far left or the far right? Here are the candidates. Quiz statements below are as presented in Spanish newspaper Libre Mercado. I made slight translation changes for ease in reading, some from Google translate, some from translate.com. I also removed an identifying political party reference from one statement. A key phrase in each statement has an identifying link. Without looking, who said what?
Far Right - Marine Le Pen: 1, 3, 4, 6, 8, 10 Far Left - Gabi Zimmer - 2, 5, 9 Far Left - Pablo Iglesias - 7 Statement 7 originally said "To the grand coalition that governs us: Merkel and Hollande, and to PP and PSOE, we deserve an alternative in Europe." This was not an easy quiz. In fact, unless one heard the speeches or followed the tweets, it was damn near impossible. And that's precisely the point. The far left and far right are both fed up with the EU. Some positions are indistinguishable. Mike "Mish" Shedlock |
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