Spot on, government spending is causing massive inflation. Higher rates may tamp down some consumer spending, but our demographics are increasingly bifurcated into the haves and the have nots. The haves are exceedingly wealthy, and greedy. In my market there is a home listed for $5.6M that I think is ridiculously overpriced. Recently I talked to a person that offered $5.3M to the seller and never got a response! The seller is loaded, and clearly thinks they can get their price. On the flip side, the cheapest livable home in our market is nearly 400k, and those buyers are struggling to qualify. Even if Powell raised rates to 10%, the government spending problem that has been going on for decades would unravel many potential gains against inflation. If Powell truly wants to see Biden win another term, we will be in for escalating inflation that makes 1973 look like chicken feed.
Three things are certain...death, taxes and higher prices. Oh and maybe one more...Gov lies.
Spot on, government spending is causing massive inflation. Higher rates may tamp down some consumer spending, but our demographics are increasingly bifurcated into the haves and the have nots. The haves are exceedingly wealthy, and greedy. In my market there is a home listed for $5.6M that I think is ridiculously overpriced. Recently I talked to a person that offered $5.3M to the seller and never got a response! The seller is loaded, and clearly thinks they can get their price. On the flip side, the cheapest livable home in our market is nearly 400k, and those buyers are struggling to qualify. Even if Powell raised rates to 10%, the government spending problem that has been going on for decades would unravel many potential gains against inflation. If Powell truly wants to see Biden win another term, we will be in for escalating inflation that makes 1973 look like chicken feed.