One of the driving forces behind inflation has been the cost of housing and rents, along with the wealth effect that comes with it, and the instability that potentially could cause if the bubble breaks.
Redfin, the large real estate brokerage company, has asked about 8% of its employees to leave today. The site a 17% below expectations demand in May. They also said they don’t have enough work for agents and support staff.
Finally the anticipate that they could be facing years not months of fewer home sales.
Not a good omen for home prices going forward.
Looking at lumber futures (a proxy for the housing market), the price is trading to the lowest level since September 2021 today, and in the process is moving further away from its 200 week moving average. Last week, the price moved and closed below that moving average for the 1st time since August 2021.
The move lower is sharp contrast to the high reached in May 2021 up near 1733.5. The current price is trading at 527.1. That’s a decline of near 70%.
PS Also asking employees to leave today was Coinbase, the digital currency broker. They announced the need to reduce staff by 18% saying they overhired.
The price of bitcoin reached the lowest level since December 2020 today, reaching to a low of $20816.35.
The $20,000 level should provide support with stops on a break.
Way back when, the crazy price targets were for bitcoin to reach $20000. That was broken in December 20, 2020, and the rest is history with the high reaching $69000 in November 2021.
Today, the price got within $816 of the $20000 level and has bounced back toward $22500.
Looking at the weekly chart, the 200 week MA is at $22364. A close below the 200 week MA this week would be the first since the low in early March 2020 at the start of the pandemic (for one weekly bar).