The guy who runs the Calculated Risk website has great graphs. He also reports everything generated by the government and various associations as if they are the absolute truth. He never asks questions. Below are two recent posts from his site.
The first says that home prices have risen by 6.3% in the last year.
The second says that rental rates have risen 4.8% in the last year.
Now for the critical question that no one seems to ask. The Owners Equivalent Rent portion of the CPI Index accounts for 24% of the CPI calculation. If home prices are rising by 6.3% and rental expenses are rising by 4.8%, you would think the Owners Equivalent Rent portion of the CPI would be in that vicinity. Right?
http://www.bls.gov/cpi/cpid1210.pdf
Well spin me around and call me Sally. The Owners Equivalent Rent portion of the CPI only went up 2.1% in the last year. Those guys at the BLS are so funny. I’m sure one of these BLS drones or the guy who unquestioningly reports this drivel have a brilliant explanation for why this makes sense.
Somebody is lying.
CoreLogic: House Prices up 6.3% Year-over-year in October, Largest increase since 2006
by Bill McBride on 12/04/2012 09:01:00 AM
index, however CoreLogic is used by the Federal Reserve and is followed by many analysts. The CoreLogic HPI is a three month weighted average and is not seasonally adjusted (NSA).
From CoreLogic: CoreLogic® Home Price Index Marks Eighth Consecutive Month of Year-Over-Year Gains
Home prices nationwide, including distressed sales, increased on a year-over-year basis by 6.3 percent in October 2012 compared to October 2011. This change represents the biggest increase since June 2006 and the eighth consecutive increase in home prices nationally on a year-over-year basis. On a month-over-month basis, including distressed sales, home prices decreased by 0.2 percent in October 2012 compared to September 2012*. Decreases in month-over-month home prices are expected as the housing market enters the offseason.
…
Trulia: Asking House Prices increased in September
by Bill McBride on 10/04/2012 10:00:00 AM
Trulia today released the latest findings from the Trulia Price Monitor and the Trulia Rent Monitor … Based on the for-sale homes and rentals listed on Trulia, these monitors take into account changes in the mix of listed homes and reflect trends in prices and rents for similar homes in similar neighborhoods through September 30, 2012.
…
In September, asking prices on for-sale homes–which lead sales prices by approximately two or more months – increased 2.5 percent year over year (Y-o-Y). Excluding foreclosures
…
Nationally, rent gains continue to outpace home price
TC says:
My in-laws were recently in the market for a temporary apartment, and I was in disbelief by how much rental costs have gone up in just the last few years. Sorry, but doubling in 8 years doesn’t translate to 2% increase per year. Does anyone believe anything the government says anymore?
Like or Dislike:
3 
0
5th December 2012 at 11:16 am
Stucky says:
I think Ronald Reagan said; “There are three kinds of lies; lies, damned lies, and statistics.”
I think Mark Twain said, “Figures don’t lie, but liars figure.”
.
(I hope the resident quote expert, Mr. Barry Popik, doesn’t jump all over my ass.)
Like or Dislike:
4 
1
5th December 2012 at 12:34 pm
Stucky says:
The Education of Obama
His textbooks
One possible solution
Well-loved. Like or Dislike:
7 
1
5th December 2012 at 12:38 pm
Persnickety says:
I stopped reading Calculated Risk at least two years ago, once I realized it had almost nothing useful to report.
Government reports of any interest get picked up here, zerohedge, and Market Ticker, at the least.
Like or Dislike:
3 
0
5th December 2012 at 1:56 pm
Barry Poppleganger says:
Bejamin Disraeli said ” Lies, Damn Lies and Statistics, you asshat.
You would be forever lost without me to tell you what Ronnie Raygun said and didn’t say.
Well-loved. Like or Dislike:
7 
0
5th December 2012 at 2:21 pm
Barry Popik says:
Oh, all right, here goes.
Quote Investigator: “Figures Don’t Lie, But Liars Do Figure.”
<a href="http://listserv.linguistlist.org/cgi-bin/wa?A2=ind0901D&L=ADS-L&P=R5917&I=-3&d=No+Match%3BMatch%3BMatches" American Dialect Society List Archive: “Lies, Damn Lies, and Statistics (Also enter “lies and statistics” in the search box)
NPR’s “A Way WIth Words”: “Liar, Liar” (My website is cited. The host, Grant Barrett, helped set up my website.)
Visual Thesaurus: “Pants on Fire!” (Access is limited to non-subscribers. My website is cited.)
BarryPopik.com: “Liar, liar, pants on fire”
OT: If anyone is interesting in reprinting the December 1812 newspaper article (200 years ago) that gave us ‘Uncle Sam,” please let me know.
Like or Dislike:
3 
0
5th December 2012 at 4:06 pm