Why Inflation Fears Are Growing – Chuck Barberini

Why Inflation Fears Are Growing

National Association of Realtors

Chuck Barberini Real Estate – Barberini Robinson Real Estate Group

This is an interesting article, from the National Association of Realtors, that talks about the potential rise in inflation 2017. It states that inflation has started to rise and should continue through the first quarter of 2017. It also refers to the fact that rents are on the rise and rental properties are harder to come by. Interest rates remain low, but inventory remains tight with housing prices up and should maintain the higher prices based on the scarcity of available houses. The media will continue to be the voice of doom and gloom because negative press sells. It is good to be aware of what is going on in the market, but the fact remains that there are still opportunities in the housing market. Check out this article, be sure to click on the link regarding the housing for the rest of 2016. There is also a link at the bottom of the page that you can click to see the current market data and interest rates. If you like this article, let me know. Follow my blog at blog.chuckbarberini.com. Thanks for reading, Chuck

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National Association of Realtors

Inflation is up by 1.1 percent through the first half of the year, and economists anticipate it will to continue to rise well into 2017. Rising inflation is expected to have a widespread impact for the economy, particularly the housing market. Lawrence Yun, chief economist of the National Association of REALTORS®, writes in his monthly Forbes.com column.

Read more4 Housing Predictions for the Rest of 2016

“One consistent area of inflationary concern is arising out of housing,” Yun writes. “Rents increased by 3.8 percent in June, the strongest pace since January of 2008.”

Apartment vacancy rates continue to be very tight, which means renters likely won’t see a decrease in rental costs anytime soon.

For those looking to buy, they’ll face plenty of challenges too. Home values are climbing quickly. Home prices nationwide have increased around 5 percent to 6 percent this year – on top of the 20 percent increase that occurred in the three years prior, Yun notes. Given limited inventories of homes for sale, home prices aren’t likely to drop anytime soon either, Yun adds.

“Going forward, a major driver of inflation will be related to housing,” Yun notes. “With inadequate new housing construction, both rents and home prices will easily outpace the general inflation. … Housing costs, moreover, weigh a hefty 33 percent on the overall consumer price index, compared to 14 percent weight for food, 7 percent for energy, and 6 percent for transportation.”Screen-Shot-2015-01-27-at-11.18.59-AM

Source: “Inflation: Slowly Warming,” Forbes.com (July 15, 2016)

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Chuck Barberini
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Why Inflation Fears Are Growing

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Author: Chuck Barberini

Chuck Barberini is a Realtor with over 18 years in the business. He’s a seasoned expert who has the knowledge and ability to navigate the intricacies of the real estate business, so you don’t have to. Over the years, Chuck has worked with several industry leading real estate companies and many knowledgeable and experienced Brokers. With over a decade’s experience in the difficult and complicated world of probate real estate and inherited homes, Chuck has now joined forces with the innovative and rapidly growing EXP Realty as a Broker Associate. Chuck received his real estate license in 2001 after being encouraged by a real estate broker friend. Originally this was a part time venture, but he eventually made the switch to full time as he discovered his enthusiasm for the job as it combined his interests in housing with helping others achieve their dreams of homeownership. Having lived in the San Francisco Bay Area his entire life, Chuck has the area knowledge required to meet the needs of buyers, sellers and investors. When he’s not delivering top notch service to his clients Chuck is a family man, having been married to his wonderful wife, Tracy, for over 30 years. Together they have raised three incredible boys. When it comes to real estate, Chuck is dedicated to serving his clients with honesty and integrity. He always has their best interests in mind and prides himself on his communication and responsiveness. Chuck would love nothing more than to lend his knowledge and experience toward helping clients with their real estate endeavors, but he doesn’t simply expect their business—he only asks for a chance to interview so that he can prove Chuck Barberini Real Estate is a great fit.

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