- 2015-10-07 4:07 am
Interest rates are going up. Traditionally rising interest rates are directly reflected in the value of real estate. But now interest rates are (predictably) rising and real estate prices are rising faster.
Obvious inflationary signal but is this a long term trend? Prices have been going up for a while but this is crazy.
I'm worried that prices and interest rates going up won't slow spending enough to slow inflation. People seem immune to thinking about spending now.
New cars are flying off the lots at 30% over MSRP. Those can't just be people that totaled their current car. A lot of people are paying that much just because they want a new one.
House prices even in smaller towns around here are crazy.
Last time gas prices topped $5 a gallon people were dumping their huge vehicles for hybrids but we are well into the $5 price and I'm seeing more and more monsters being bought and they are being driven like the accelerator is an on/off switch. I dropped my normal freeway speed down to 70 from 75 and I'm getting nearly 3 more miles per gallon.
It really doesn't work if you want to get what was a slightly more expensive house 10 years ago because what was $50,000 more is now $200,000 moreno upward real estate trend has ever worked favorably for me