House Prices are Rising

House Prices are Rising


House prices are rising three times as fast as the cost of living. Prices are up 27% in the last two years. As a result, people are again “taking out” equity, going further into debt. That works for a while because you are paying off debt in cheaper dollars.

House Prices are Rising

The median house price is now above $400,000. However, if you are under 30, the average down payment is only about 6%. That leaves the average young buyer under 30 with a $376,000 mortgage. The government has at least one way to fight inflation: to raise interest rates. However, the Fed knows there is very little room to raise rates. The rise would be devastating to the economy

As prices rise, so will mortgage rates. And each 1% increase in the mortgage rate adds $3,760 to the annual cost.

Inflation is Not Transitory

Don’t believe any of the misinformation that is in the media. Inflation is not transitory. The Chairman of the Federal Reserve told Congress recently to stop using that word. Inflation, even a little, is hard on the lower-income and middle class. Using the rule of 72, 2% inflation doubles prics in 36 Years; 7% inflation doubles prices in 10 years. My AMEX credit card just came, and I see it charges 18 3/4 %interest. At 18,.75%, prices double in almost four years. Their wealth doesn’t rise with inflation. They don’t own hard assets that appreciate s prices rise. The top 10%, however, have lots of real estate, stocks, gold, and crypto-assets that do well as inflation climbs. Inflation is a tax that takes from the poor and gives to the rich.

Why?

Why doesn’t government warn its citizens about the perils of inflation? If they did, you would prepare and end their game of rewarding their pals.

Inflation Is Not Simply Rising Prices

This myth effectively redefines inflation. When analysts, politicians, and pundits talk about inflation, they usually mean rising consumer prices as measured by the consumer price index (CPI). But this is a symptom of inflation. Inflation itself is an increase in the money supply.

If the money supply increases and the number of goods and services remain relatively stable, you have more dollars chasing the same amount of stuff. That means prices rise as consumers bid up the limited amount of stuff with their extra dollars.

In a nutshell, rising prices are not in-and-of-themselves inflation.

The government altered the definition of the CPI to suit its purposes. As a result, the conventional definition you hear today is nothing more than government propaganda. It is a way to hide its responsibility for rising prices, and this redefining of the word makes these other myths possible.

What is a Couple to Do?

Seriously? Wise up! All the chatter about inflation someone perpetrated to fool you into thinking inflation is not really a problem. Even if it is q problem, there’s not anything anybody can do about it. This lie is the ultimate misinformation. The government and central bank can do something about it – quit creating money out of thin air. To build anything or produce a loaf of bread, you need capital and labor. When you finish, you have something you can sell. The government can create dollars out of thin air. It has no value like the product you produced with the sweat and capital you saved.

Here is the inflation truth – a general increase in prices is always caused by an increase in the supply of money relative to the number of goods and services available in the economy.

FREE information on How to sell your house fast

Styl Properties, Inc. is here to help homeowners out of any distressed situation.  

As investors, we are in business to make a modest profit on any deal. However, we can help homeowners out of just about any situation, no matter what!  There are no fees, upfront costs, commissions, or anything else.  Instead, we offer the simple truth about your home and how we can help you sell it fast.

Give us a ring. We would love to help you understand the process and answer all of your questions. You can reach us at 402 999.0577

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