Will inflation kill the housing bubble?
- Thread starter The Kin2
- Start date
Where have you noticed that Kin? Is it anecdotal? Because none of the data out recently has suggested a bottoming out.
I'm not aware of any previous period to now that's seen such rampant inflation/asset appreciation with low interest rates. Hence those low rates, a falling dollar and high stock prices have helped keep real estate firm.
Think about it. The newer communities where working class folks who're trying to become asset holders is where the bottom has fallen out. Conversely established "good" areas are thriving because the residents there are asset holders. Being paid an hourly wage in depreciating dollars equals bad. Peeling off a few shares of XOM or GOOG equals good.
don't know where you guys live but prices are accelerating downwards where i live
surely house prices are a large component of inflation, in a sense they are sort of part of the same thing , so no , in the long term inflation will not slow house prices , higher interest rates will slow both , because in a sense both are the almost the same thing( house price inflation , and inflation) , the clue is in the word "inflation"!!!
