The threshold has been frozen since 2009, and even prior to that failed to keep pace
with house price inflation.
Not exact matches
I live in a low almost deflationary enviroment (Europe) and was checking out some retirement software and something keep throwing me off, took me a bit to figure it out but it was
inflation, like WTF is that and then I remembered I lived in Spain during the
housing bust and now in Germany
with negative real interest rates and I'm simply not used the idea that
prices increase each year simply because time goes by.
And it all starts
with the puzzling discrepancy between
inflation and
housing prices.
Filed Under:
inflation Tagged
With: gas, home
prices,
housing,
inflation, interest rates, mortgage rates, oil
As in Australia, consumption has also been supported by rapid
house price inflation,
with prices rising by 16 per cent over the past year and doubling over the past five years.
They also ought to announce the abandonment of the
inflation target and its replacement by a
price - level target,
with house prices included in a new CPI.
The question that I have at this point in the cycle is how low the Fed will get before they get scared about
inflation, and flatten out policy to see which effect is larger — deflation from overvalued
housing assets purchased
with debt, or
inflation of goods and services
prices.
In a 2013 report, the
Housing Industry Association notes that in 1986 and 1987, mortgage interest rates were over 15 per cent, and says «there is a very strong linkage between interest rates and rental
price inflation,
with the two variables generally moving in tandem».
It turns out that Mr. Dodge was right on the mark
with his comments, but it was
house price inflation that CMHC was stoking.
Why is it that having skin in the game, as
with a substantial down payment, isn't seen a good idea and a check on
housing price inflation?
Robert Shiller the Nobel prize winner on Economics, proved
with a convincing chart that from 1890 to 2010, that
house prices returned about zero if one excluding
inflation.
History shows that
house prices tend to keep pace
with inflation over long periods, but donâ $ ™ t usually produce huge profits.
People living longer, second marriages, cohabitation, widespread home ownership and
house price inflation mean that families need more help than ever
with disputes about wills and home ownership.
«
With lean for - sale inventories and low rental vacancy rates, many markets have seen
housing prices outpace
inflation,» Nothaft says.
The lawmakers asked the GAO, among other things, to compare the increase in
housing prices with the rate of
inflation over the past five years and to look at whether consumers have been benefiting from competition in the residential real estate brokerage market.
The median
house price in KZN was up 6.2 % year on year in April, just ahead of
inflation while the top end of the
housing market in this region is enjoying popularity
with affluent buyers.
Experts are in consensus the U.S. economy is headed for accelerated
inflation, which will drive up
housing prices, along
with all other living expenses, making it harder for prospective homebuyers to save for their down payment.
Among those forces were the baby boom, in which post-World War II babies matured and entered the
housing market; deregulation of the mortgage finance industry, which gave lenders the freedom to offer a wide variety of loans, and a high
inflation rate that combined
with soaring
housing prices to convince consumers that home ownership was safe and sure.
«
With inadequate new
housing construction, both rents and home
prices will easily outpace the general
inflation.
Ryan discusses the death of Osama Bin Laden; Ryan reviews the economic news of the week; Ryan notices the correlation between increased home sales and interest rate drops; Louis notes we can't expect the
housing market to be supported by further decreases in rates as they are already near historic lows; Ryan explains that interest rates change once every four hours; Ryan notes the difference between getting a quote and being locked in to an interest rate; Ryan advises the importance of keeping in touch
with your mortgage lender; Louis notes that interest rates change a lot faster than home
prices; Ryan notes that the consumer confidence was up, Ryan and Louis discuss the Fed's decision to keep interest rates where they are and to continue the $ 600 billion QE2 program; Ryan and Louis discuss the Fed's view that
inflation is nascent; Louis notes that not only does the Fed not see
inflation that exists but disclaims any responsibility for it; Louis asserts that there is a correlation between oil
prices and Fed policy; Louis discusses Ben Bernanke's assertion that the Fed can't control oil
prices but that they somehow can control the impact of higher oil
prices on the rest of the economy; Louis also remarks on Bernanke's view of the dollar - the claim that a strong dollar can be achieved through the Fed's current policy as it is their belief that they are creating a sound economy and therefore a sound dollar; Louis notes the irony of the Fed chastising Congress» spendthrift ways — if the Fed did not monetize the debt, Congress could» nt spend; Louis noted that as Bernanke spoke the
prices of gold and silver rose as it seemed that the Fed has no interest in cutting off the easy money; the current Fed policy will keep interest rates low; Ryan notes that the Fed knows that they can't let interest rates rise because of the
housing mess; Louis notes that the Fed has a Hobson's Choice - either keep rates low or let interest rates rise and cut off the recovery.
Questions include: How do
housing prices today compare
with another period of low
inflation / low growth?