What I’m Reading
Disconnect: US Economic data aren’t adding up. Incomes indicate a very strong economy while expenditures show a somewhat weakening one. Something in the data is incorrect. The Overshoot
Bullwhip: Lumber prices have shed over 50% since March and lumber yards are filling up as mills slow their production. As usual, over ordering was an issue as future demand was overestimated and now we have a hangover. Wall Street Journal
Open for Business: The world’s largest port complex in Shanghai is finally returning to normal. While this is undoubtedly a good thing, it also means that the supply chains will get worse before they get better as manufacturers try to fill backlogs. The Conversation
Limited Options: With rising home prices and mortgage rates stretching affordability, SFR operators are seeing an influx of renters by necessity rather than choice. Globe Street
Staying Power: US home prices rose a whopping 20% YoY in March per the latest S7P Case-Shiller report. This trend should begin to slow down as higher mortgage rates take a big bite out of affordability. CNBC
Chart of the Day
Demand destruction is more of a threat to the housing market than overbuilding.
Source: The Daily Shot
WTF
I Thought This Was America: A drunk couple was arrested for having sex on a dock in front of onlookers because Florida. 12 News
When You’ve Gotta Go: A 69 year old man was arrested after he stripped down in a surf shop and pooped on its floor because Florida. Tampa Free Press
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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