Just resigned my lease. For reference I am in a "Luxury" Apt in downtown st petersburg FL. Aka the tampa bay area. Now this is an area that has been said is not going to come down as far as other places in the country. But my renewal letter came and for a 12 month lease, we could resign for $100 less than we were currently paying.
Fastest rate of increases ever in "modern" times. What about pre-modern times of 1980, when Volcker raised the funds rate by 2% in December 5th, 1980? In one day, not several months. Inflation is "only" 6% so interest rates still have a negative yield. An inflation rate that the Fed rate far beyond what they foresaw. Why anyone has faith in the Fed (i,e, central planning, hint: it doesn't work) is beyond me.
With prices "having to drop by 35% for an identical house to have the same monthly payment," can we assume that the RE market will come down anywhere near that same 35%? How long do we anticipate something like that would happen?
Just resigned my lease. For reference I am in a "Luxury" Apt in downtown st petersburg FL. Aka the tampa bay area. Now this is an area that has been said is not going to come down as far as other places in the country. But my renewal letter came and for a 12 month lease, we could resign for $100 less than we were currently paying.
Thanks for breaking it down so someone like me can understand! I appreciate your insight.
Fastest rate of increases ever in "modern" times. What about pre-modern times of 1980, when Volcker raised the funds rate by 2% in December 5th, 1980? In one day, not several months. Inflation is "only" 6% so interest rates still have a negative yield. An inflation rate that the Fed rate far beyond what they foresaw. Why anyone has faith in the Fed (i,e, central planning, hint: it doesn't work) is beyond me.
With prices "having to drop by 35% for an identical house to have the same monthly payment," can we assume that the RE market will come down anywhere near that same 35%? How long do we anticipate something like that would happen?
Thanks Graham! Love your articles.
I haven’t heard of any rents coming down between Boston and the Rhode Island area.