Thursday, November 3, 2022 / by Jenny Carroll
Contributed by John Case
Dripping Springs Stanberry Office
We are telling you something that you probably already know. Rents are high; incredibly high! While the answer is a little obvious, there are 3 reasons, all of which are subsets of the real reason.
1) There really is too much money in the economy for the available goods that it is chasing. It may not feel like it if you haven’t had a raise in a while but rents have been increasing faster than many household incomes have.
2) There are not enough places to rent. This has become more and more true over the past 5 years. The demand for properties to lease, has exceeded the number of them available. This creates a condition of demand outpacing supply which results in this demand pushing up lease rates simply because the demand had families bidding up what they are willing to pay. In this way many families have insufficient income for the home they need or want and must search for a home that . ...
home, affordable housing, buying power, inflation, interest rates
Friday, September 2, 2022 / by Jenny Carroll
By John Case
Cause and effect are often confusing when discussions of economics arise. Arguments pop up, primarily blaming an upcoming recession causing the number of property sales in recent times. The flip side of the argument is that the recession is causing a drop in real estate transactions. Neither of these arguments are true simply because slowdowns occur all of the time (economic increases also happen all of the time as well).
The real problem, if there is one, is that we like to hang labels on things which do not have solid definitions. The term ‘recession’ has this problem and causes arguments on whether there is one at all. The longest living and most used definition is as follows: ‘When the Gross Domestic Product (GDP) is 20% or more below the previous quarter for more than 2 consecutive quarters, the economy has entered into a recession’. This is all well and good but ignores some situations. The most ob. ...
buying power, economy, inflation, recession
Tuesday, July 19, 2022 / by Jenny Carroll
By John Case
You’re right, they’re up. From the looks of things, it appears that they may be so for some time. However, despite the doom and gloom that we see on TV, hear on the radio, or read in the paper or social media, this does not necessarily mean that if you have been looking to purchase a home that you are shut out of the market until such time that rates retreat to the levels we have seen for the past couple of years.
Here is a little grounding for you with a long-term perspective. Interest rates have been declining since the early 1980’s. This mean that for many of you, you have not seen rates increase for 40 years. Without this perspective, any increase that you see in today’s mortgage market will look to be high. Through the past 40 years, the rates we see today are very inexpensive.
In you were to take out a mortgage today, 3 things are likely to happen. First, interest rates may continue to increase. This will make you look like a geni. ...
family, home, affordable housing, buying power, interest rates