Inflation here? gas/grocery prices just continue to climb
When you factor in lower interest rates, that cushions the blow somewhat. The problem is that when the low interest gravy train runs out, the rapid price increases will very rapidly become unsustainable and we'll be in a pickle then. The fed doesn't have a lot of room to increase interest rates to cool the markets without outsized demand destruction of housing. Another 1-2% higher and you'll see demand drop dramatically. Borrowing $1 million at 3.5% for 30 years is miles different than 6%.https://infogram.com/1pmneqdzzlwwzqt391egdelvw1szzg9mdd2
When you inflation adjusted house prices, you see how far out of normal prices have become. From 70s-00s a house has cost about 200k +/- 25k. We have moved to 400k as the average. We could lose 25% and still be 100k over historical averages.
