We are told that inflation is well below the 2% rate targeted by the Fed.
In the last five years the value of our house has gone from $420,000 to $720,000. What has increased its value? Not capital improvements; it has not had any, has not so much as been repainted. So, how does 2% inflation account for a 71% increase in the value of our house in just five years?
Just as a point of information, at the peak of the last housing bubble, just before it collapsed in 2008, this house was valued at $550,000. Despite being valued at some 30% higher now, we are told that this value is not artificial or part of a bubble for reasons that are too complex for uneducated slobs like me to understand. Right.
I'm only guessing that 'inflation' as the Feds define it is not the same as home value 'inflation' aka: appreciation.
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