Why Inflation Fears Are Growing
National Association of Realtors
Chuck Barberini Real Estate – Barberini Robinson Real Estate Group
This is an interesting article, from the National Association of Realtors, that talks about the potential rise in inflation 2017. It states that inflation has started to rise and should continue through the first quarter of 2017. It also refers to the fact that rents are on the rise and rental properties are harder to come by. Interest rates remain low, but inventory remains tight with housing prices up and should maintain the higher prices based on the scarcity of available houses. The media will continue to be the voice of doom and gloom because negative press sells. It is good to be aware of what is going on in the market, but the fact remains that there are still opportunities in the housing market. Check out this article, be sure to click on the link regarding the housing for the rest of 2016. There is also a link at the bottom of the page that you can click to see the current market data and interest rates. If you like this article, let me know. Follow my blog at blog.chuckbarberini.com. Thanks for reading, Chuck
Why Inflation Fears Are Growing
National Association of Realtors
Inflation is up by 1.1 percent through the first half of the year, and economists anticipate it will to continue to rise well into 2017. Rising inflation is expected to have a widespread impact for the economy, particularly the housing market. Lawrence Yun, chief economist of the National Association of REALTORS®, writes in his monthly Forbes.com column.
Read more: 4 Housing Predictions for the Rest of 2016
“One consistent area of inflationary concern is arising out of housing,” Yun writes. “Rents increased by 3.8 percent in June, the strongest pace since January of 2008.”
Apartment vacancy rates continue to be very tight, which means renters likely won’t see a decrease in rental costs anytime soon.
For those looking to buy, they’ll face plenty of challenges too. Home values are climbing quickly. Home prices nationwide have increased around 5 percent to 6 percent this year – on top of the 20 percent increase that occurred in the three years prior, Yun notes. Given limited inventories of homes for sale, home prices aren’t likely to drop anytime soon either, Yun adds.
“Going forward, a major driver of inflation will be related to housing,” Yun notes. “With inadequate new housing construction, both rents and home prices will easily outpace the general inflation. … Housing costs, moreover, weigh a hefty 33 percent on the overall consumer price index, compared to 14 percent weight for food, 7 percent for energy, and 6 percent for transportation.”
Source: “Inflation: Slowly Warming,” Forbes.com (July 15, 2016)
Mortgage Rates and Market Data
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Why Inflation Fears Are Growing
