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"A key inflation gauge soared in October, the government reported Tuesday, as higher energy costs helped fuel the biggest increase in prices at the wholesale level in nearly 15 years."
This combined with the low US dollar, spells trouble. Get your mortgage locked in and prepare for the coming economic storm.
Our company is a click and brick operation, we have had large increases in commodities such as steel, paper and plastic over the last six months. So we have slowly been increasing prices to offset our cost increases.
So here comes some inflation.
:-(
The problem in the housing market is not inflation but a "bubble" of high prices propped up solely by low interest rates. When rates go up - and they always do, eventually, - the selling price of homes will go down. And that will be bad news news for people holding homes purchased at top dollar with low interest rate loans.
True, people who bought at the top will have a hard time selling their homes. Unfortunately that is true in anything (stocks, real estate, etc.) Unless we are talking about something that never goes down in value, there will always be a group of people that buys at the top. The idea is not to be one of these people.
I don't currently own a house, but I would love nothing more than to see a housing market crash. Then I could snap up a bunch of properties cheaply and hold onto them for the next wave.
