by Wolf Richter
The dollar lost purchasing power with regards to houses at the fastest rate in six years.
Prices of single-family houses jumped 8.4% in the US, the biggest year-over-year jump since March 2014, according to the Case-Shiller Home Price Index for October, released today. The index is based on the “sales pairs” method, comparing the price of a house that sold in the current month to the price of the same house when it sold previously, going back decades. By comparison, the National Association of Realtors’ house price index, which is based on “median prices,” has skyrocketed 15%. In this terrible economy with 9 million to 20 million people out of work, house prices have been fired up by record low interest rates, the $3 trillion the Fed has handed the markets, the shift of working from home and not wanting to live in an apartment or condo tower, and by a dose of panic-buying.