Will Inflation Hurt Home Prices? Is It Time To Buy?

By
Real Estate Agent with CENTURY 21 Anne Arnold

Year-over-year declines in national home prices have stabilized in the 10 percent to 11 percent range, but price declines are accelerating when inflation is taken into account, according to a new analysis by First American CoreLogic.

From 1960 to 1979, inflation rose from barely more than 1 percent to nearly 14 percent. It was the greatest peacetime inflationary spike in this nation's history, and it had massive repercussions in every area of our lives. The direct consequences included Ronald Reagan's election to the presidency in 1980, stagnation in living standards, and a growing belief-both in America and abroad-that the great-power status of the United States was ending.The Great Inflation and Its Aftermath traces the origins and rise of double-digit inflation and its fall in the brutal 1981-82 recession, engineered by the Federal Reserve under then-chairman Paul Volcker and with the staunch backing of Reagan.

Home prices have declined dramatically since 1/1/09; Our market is moving, people are buying. But wait; sales are up 6.5%, inventory is down 30%, are we headed to a home inflation?

Recent studies predict we could see the effects of a inflation by 3rd quarter. Also interest rates are predicted t be back up to 6.5% by 4th quarter. I truly believe knowing my market as well as I do the best deals are being made between now & July. After that I currently agree with current predictions that we will see a bit of inflation.

The deals are out! Invest!

www.jabinnorris.com

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Jabin Norris

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