The U.S. Case-Shiller 20 City Composite housing data to July 2014 were released and looking at the M/M and Y/Y charts it's easy to see that seasonal buying has again collapsed as we batten down the hatches against the coming winter.
The 2014 M/M peak failed to breakout from under the 2013 M/M peak and the 2014 Y/Y momentum has been in a down trend since 2013 as well.
The downturn is seasonal for sure and looks like a cyclical down trend as well with lower highs being put in after the run up out of the 2009 Pit of Gloom.
If U.S. housing is in a secular down trend, it began way back in 2004 (see the Y/Y data) and we should see momentum attempting a test of the Pit of Gloom. That would take a big shift in sentiment in the animal spirits.
What could cause that?
- Credit market distress?
- Currency revaluations?
- Negative income statements?
- Amortization fatigue?
- Rereading Orwell?