«The market should continue its slow march back to normal, as annual (price)
appreciation rates fall to more sustainable levels around 3 percent,» said Stan Humphries, chief economist at real estate data provider Zillow.
Not exact matches
The dampening effect of
falling imported goods prices at the final stage of production continued to ease over the year to December, suggesting that the disinflationary impetus from the
appreciation of the exchange
rate in 2002 and 2003 has moderated substantially.
Net foreign debt liabilities
fell by $ 6 billion in the June quarter — mainly a result of the
appreciation of the exchange
rate over the quarter — reducing the ratio of net foreign debt to GDP to 38.3 per cent.
An
appreciation of the exchange
rate means that: the increase in the domestic currency price of commodity exports will be less than the increase in world commodity prices; the income of the other tradable sector will
fall; and real income gains flow to the broader economy via the associated decline in the price of imports.
In general, producer price pressures eased significantly in the June quarter, largely because of the
fall in prices of oil and related products, and the generalised downward pressure on the prices of imported goods resulting from the exchange
rate appreciation (Table 16).
The big question is whether with higher interest
rates, home
appreciation will slow or even
fall.
The exchange
rate appreciation also helped to offset an increase in international crude oil prices, so that in the December quarter retail fuel prices
fell by around 0.9 per cent.
The big question is whether with higher interest
rates, home
appreciation will slow or even
fall.
«Although we strongly believe that the housing supply - demand imbalance for single - family homes will continue to drive above - average home price
appreciation, just as
falling mortgage
rates aided pricing power on the margin in recent months, we expect the opposite effect to become evident in the coming months.
When
rates fall to 2 % that bond investor will experience just 10 % in principal
appreciation if
rates get cut in half again.
The shift will be fueled by slowing
appreciation; according to the Zillow Home Value Index (ZHVI), home values have risen 6.2 percent in the last year to a median $ 191,200, a
rate that will
fall by approximately half by October 2017.
I would concur that the US economy is a freight train, but right now I'm not feeling convinced that the price
appreciation we've seen isn't largely from
falling interest
rates and government intervention.