The biggest news this week in our world of real estate was the Federal Reserves rate hike which is the largest single increase since 2000. It certainly appears to be a transition into
a full-fledged inflation-fighting mode with a goal of reducing the current 8.5% annual inflation rate to the Fed’s 2% target rate. We have read many opinions on what the future of housing demand and prices will be from these rate increases and how many believe one of inflation’s biggest drivers over the past year has been this crazy U.S. housing market. For right now the market is still very enthusiastic and we personally see a lot of buyers still motivated to purchase despite rising rates and inflation. We will keep you updated as we continue on this journey!
Here are some prices from 1980 – just 42 years ago – to better understand how inflation has been around forever…..
Average income: $ 19,173/year…..today its approx $53,490…up 275%
New House: $ 68,714….today median is $392,000….up over 550%!
New Car: $ 7,201…today it’s about $46,000…up over 600%!
Average rent: $ 300/month…today it’s approx $1,295/month….up +425%!
Harvard tuition: $ 5,300/year…today it $51,143…..up +950%!
Gasoline: $ 1.19/gallon….today it’s $4.14/gallon…up almost 350%!
…wow.. education inflation makes gas inflation appear….low! 😂
Have a great Mother’s Day Weekend!
The Carrie & Renee Team
Carrie, Renee, Lauren, Stephanie & Didi