Deflation, inflation – Housing. Thinkng out loud

[cr]

Good comments.

A few things to consider are if/when inflation returns due to the rampant money printing of late will housing start to turn around? And will it be artificial or will it have hit bottom?

And then, we know it’s only a matter of time before the Fed has to raise rates, so how bad will inflation be by then and how much harder will that hit housing?

I can see it already: housing falls for 6-10 more years by which time people have forgotten the Great Housing Crash of the late 2000s and after a year of modest gains brgin saying RE is under-valued again.

[peterb]

The price of housing is predicated on the ability of the populace to pay for it. We could have a devaluation of the US$ while the populace cant afford to pay for a house. I think that basically, the US would need wages to rise in order to support house prices. If this doesnt happen, then prices have to come down.
As the govt spends more and more money, this will weaken the US$. Now, does all this govt spending result in wage increases? Or just sustaining the economy to avoid collapse?

[peterb]

The price of housing is predicated on the ability of the populace to pay for it. We could have a devaluation of the US$ while the populace cant afford to pay for a house. I think that basically, the US would need wages to rise in order to support house prices. If this doesnt happen, then prices have to come down.
As the govt spends more and more money, this will weaken the US$. Now, does all this govt spending result in wage increases? Or just sustaining the economy to avoid collapse?

[peterb]

The price of housing is predicated on the ability of the populace to pay for it. We could have a devaluation of the US$ while the populace cant afford to pay for a house. I think that basically, the US would need wages to rise in order to support house prices. If this doesnt happen, then prices have to come down.
As the govt spends more and more money, this will weaken the US$. Now, does all this govt spending result in wage increases? Or just sustaining the economy to avoid collapse?

[peterb]

The price of housing is predicated on the ability of the populace to pay for it. We could have a devaluation of the US$ while the populace cant afford to pay for a house. I think that basically, the US would need wages to rise in order to support house prices. If this doesnt happen, then prices have to come down.
As the govt spends more and more money, this will weaken the US$. Now, does all this govt spending result in wage increases? Or just sustaining the economy to avoid collapse?

[peterb]

The price of housing is predicated on the ability of the populace to pay for it. We could have a devaluation of the US$ while the populace cant afford to pay for a house. I think that basically, the US would need wages to rise in order to support house prices. If this doesnt happen, then prices have to come down.
As the govt spends more and more money, this will weaken the US$. Now, does all this govt spending result in wage increases? Or just sustaining the economy to avoid collapse?

[DWCAP]

Ill agree with NorLA…guy that some of the comments on this site have gotten alittle over pesmesetic as of late. I dont think we are going to a “mad max” type world, even if we go into a depression. Rather, I think all of this crap will be taken out of our countries hide in a reduced standard of living for years and years to come. We will still have cars, but teenagers will get to borrow the car for the night, not get a new mustang on their 16th bday. People will take camping vacations in the USA rather than ‘Eco’ Camping vacations in Thailand. A movie and chain resturant dinner will be alot more common than a night on the town after a steakhouse dinner.
Basically I think we will go back to a lower, if more stable, standard of living for all.
Unfornatually I also think that the gap between rich and middle class will continue to widen.

[DWCAP]

Ill agree with NorLA…guy that some of the comments on this site have gotten alittle over pesmesetic as of late. I dont think we are going to a “mad max” type world, even if we go into a depression. Rather, I think all of this crap will be taken out of our countries hide in a reduced standard of living for years and years to come. We will still have cars, but teenagers will get to borrow the car for the night, not get a new mustang on their 16th bday. People will take camping vacations in the USA rather than ‘Eco’ Camping vacations in Thailand. A movie and chain resturant dinner will be alot more common than a night on the town after a steakhouse dinner.
Basically I think we will go back to a lower, if more stable, standard of living for all.
Unfornatually I also think that the gap between rich and middle class will continue to widen.

[DWCAP]

Ill agree with NorLA…guy that some of the comments on this site have gotten alittle over pesmesetic as of late. I dont think we are going to a “mad max” type world, even if we go into a depression. Rather, I think all of this crap will be taken out of our countries hide in a reduced standard of living for years and years to come. We will still have cars, but teenagers will get to borrow the car for the night, not get a new mustang on their 16th bday. People will take camping vacations in the USA rather than ‘Eco’ Camping vacations in Thailand. A movie and chain resturant dinner will be alot more common than a night on the town after a steakhouse dinner.
Basically I think we will go back to a lower, if more stable, standard of living for all.
Unfornatually I also think that the gap between rich and middle class will continue to widen.

[DWCAP]

Ill agree with NorLA…guy that some of the comments on this site have gotten alittle over pesmesetic as of late. I dont think we are going to a “mad max” type world, even if we go into a depression. Rather, I think all of this crap will be taken out of our countries hide in a reduced standard of living for years and years to come. We will still have cars, but teenagers will get to borrow the car for the night, not get a new mustang on their 16th bday. People will take camping vacations in the USA rather than ‘Eco’ Camping vacations in Thailand. A movie and chain resturant dinner will be alot more common than a night on the town after a steakhouse dinner.
Basically I think we will go back to a lower, if more stable, standard of living for all.
Unfornatually I also think that the gap between rich and middle class will continue to widen.

[DWCAP]

Ill agree with NorLA…guy that some of the comments on this site have gotten alittle over pesmesetic as of late. I dont think we are going to a “mad max” type world, even if we go into a depression. Rather, I think all of this crap will be taken out of our countries hide in a reduced standard of living for years and years to come. We will still have cars, but teenagers will get to borrow the car for the night, not get a new mustang on their 16th bday. People will take camping vacations in the USA rather than ‘Eco’ Camping vacations in Thailand. A movie and chain resturant dinner will be alot more common than a night on the town after a steakhouse dinner.
Basically I think we will go back to a lower, if more stable, standard of living for all.
Unfornatually I also think that the gap between rich and middle class will continue to widen.

[jficquette]

[quote=Nor-LA-SD-guy]My grand father had a 10 acre farm in the San Fernando Valley in the 1930’s right where Warner Center is now (50 story office buildings incase you are not familiar with that local),

The San Fernando valley looked a lot like Palmdale Lancaster area in the 1930’s

In 1980 irvine was mostly farm land

In 1970 Valencia CA Population was about 15 thousand.

The theme here is very fast growth over a very long time period in SoCal .

So If you get your chance to buy a home during this downturn (how ever long it lasts)

Maybe you should (If you can afford it).

Just my two cents
[/quote]

That was before the Democrats ran the state into the ground.

Not sure everyone understands what a $40bill and growing state deficit means regarding future Tax increases etc.

John

[jficquette]

[quote=Nor-LA-SD-guy]My grand father had a 10 acre farm in the San Fernando Valley in the 1930’s right where Warner Center is now (50 story office buildings incase you are not familiar with that local),

The San Fernando valley looked a lot like Palmdale Lancaster area in the 1930’s

In 1980 irvine was mostly farm land

In 1970 Valencia CA Population was about 15 thousand.

The theme here is very fast growth over a very long time period in SoCal .

So If you get your chance to buy a home during this downturn (how ever long it lasts)

Maybe you should (If you can afford it).

Just my two cents
[/quote]

That was before the Democrats ran the state into the ground.

Not sure everyone understands what a $40bill and growing state deficit means regarding future Tax increases etc.

John

[jficquette]

[quote=Nor-LA-SD-guy]My grand father had a 10 acre farm in the San Fernando Valley in the 1930’s right where Warner Center is now (50 story office buildings incase you are not familiar with that local),

The San Fernando valley looked a lot like Palmdale Lancaster area in the 1930’s

In 1980 irvine was mostly farm land

In 1970 Valencia CA Population was about 15 thousand.

The theme here is very fast growth over a very long time period in SoCal .

So If you get your chance to buy a home during this downturn (how ever long it lasts)

Maybe you should (If you can afford it).

Just my two cents
[/quote]

That was before the Democrats ran the state into the ground.

Not sure everyone understands what a $40bill and growing state deficit means regarding future Tax increases etc.

John

[jficquette]

[quote=Nor-LA-SD-guy]My grand father had a 10 acre farm in the San Fernando Valley in the 1930’s right where Warner Center is now (50 story office buildings incase you are not familiar with that local),

The San Fernando valley looked a lot like Palmdale Lancaster area in the 1930’s

In 1980 irvine was mostly farm land

In 1970 Valencia CA Population was about 15 thousand.

The theme here is very fast growth over a very long time period in SoCal .

So If you get your chance to buy a home during this downturn (how ever long it lasts)

Maybe you should (If you can afford it).

Just my two cents
[/quote]

That was before the Democrats ran the state into the ground.

Not sure everyone understands what a $40bill and growing state deficit means regarding future Tax increases etc.

John

[Author]

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