Before 1981-4 (can’t remember the exact date) the cost to buy a house was included in the CPI, so really we are experiencing inflation of the 1970’s if you calculate it the same way we/they did in the 1970’s, so 10 to 15% is not that far off I believe.
Also eventually rents do meet the cost to buy (within 10-25%)
(Assume 20% down 30 year fixed as your base)
So there is a lot of inflation in the pipe the Fed wants you to ignore …
Before 1981-4 (can’t remember the exact date) the cost to buy a house was included in the CPI, so really we are experiencing inflation of the 1970’s if you calculate it the same way we/they did in the 1970’s, so 10 to 15% is not that far off I believe.
Also eventually rents do meet the cost to buy (within 10-25%)
(Assume 20% down 30 year fixed as your base)
So there is a lot of inflation in the pipe the Fed wants you to ignore …
You’re confusing effects on prices with the cause (inflation/deflation). Also, rents are down. I posted an article from the UT about this a few days ago here and no one commented on it. When I resigned my lease a few months ago I had an increase…of 2%. Rents are not going up.
You’re confusing effects on prices with the cause (inflation/deflation). Also, rents are down. I posted an article from the UT about this a few days ago here and no one commented on it. When I resigned my lease a few months ago I had an increase…of 2%. Rents are not going up.
I give up – if you guys want to think that currency de-valuation due to the Feds increasing the money supply is at the heart of house price increases in San Diego, go ahead. It has some effect, but the Asians and the credit markets are at the heart of the matter.
I give up – if you guys want to think that currency de-valuation due to the Feds increasing the money supply is at the heart of house price increases in San Diego, go ahead. It has some effect, but the Asians and the credit markets are at the heart of the matter.
yeah, home price increases based on debt increases isn’t “inflation”, it’s a bubble.
“inflation” as measured by price indexes of goods that are imported from countries with price controls is utterly retarded.
currency and population… as the population increases, the physical volume of money has to increases proportionally. otherwise, you’ll have currency inflation; less relative supply vs increased demand. at the same time, with more people comes more labor which results in wage deflation; while each dollar is worth more, you get less and less of it for a given job.
and “controlling” inflation via interest rates is senseless. inflation for who? for what? the banks still get their money, (as you know the effect increased mortgage rate has on home prices; total dollar amount for the buyer is the same, but the seller gets the shaft with deflated sale price) and everyone else pays; more expensive credit = less spending = less profit = less wages.
