Isaiah Inflation

Inflation is decreasing, but home prices are not. The Federal Reserve's inflation target is 2%. In a healthy economy, a home purchased for $1 million should appreciate by about $20,000 the following year. However, home prices have been increasing rapidly in recent years, despite inflation coming down. Decreasing home prices would be considered deflation, which can harm the economy by reducing consumer spending, undermining businesses, and worsening debt burdens. Instead, we want home prices to increase at a slower rate. It's recording here, right? Everything's on. Okay. Inflation's coming down, so why aren't home prices? You ready? Yep. Inflation's coming down, so why aren't home prices? Now I know what you're thinking. I know what you're thinking. Isaiah's just. You're gonna observe. Oh my God. No, you're good. Yeah, just let me go for a little bit. Okay. Inflation's coming down, so why aren't home prices? I know what you're thinking. Isaiah's just a realtor. What does he know about the economy? It's just open doors. What the hell does this guy know about the economy? Next. The Federal Reserve's inflation target is 2%. The Federal Reserve's inflation target is 2%. Let's say you buy a home for a million dollars. By next year, that home should appreciate by about $20,000. Let's say you buy a home for $1 million in a healthy economy. That home would be worth $1,020,000 next year. Now we all know that hasn't been the case over the past few years. Now we all know that hasn't been the case over the past few years, and home prices have gone up. Now we all know that hasn't been the case over the past few years, and home prices have gone up at a crazy speed. Since 2020, home prices have doubled in some areas, and inflation is to blame. And inflation is to blame. And inflation is to blame. According to the Federal Reserve, inflation's finally coming down. But according to the Fed, inflation's finally coming down. So why aren't home prices? So why aren't home prices? Despite 30 years, prices coming down wouldn't necessarily be healthy for the economy. To be honest, we don't want prices to come down. Here's why. That would be considered deflation, which can wreak havoc on the economy over time. That would be considered deflation, which can wreak havoc on the economy over time. It can dampen consumer spending, undermine businesses, and worsen debt burdens. It can dampen consumer spending, undermine businesses, and worsen your debt burdens. Which can really slow down economic growth. So when inflation comes... Which really slows economic growth. Undermine businesses and worsen debt burdens, which can really slow down economic growth. So when inflation comes down, that does not mean prices come down. And we don't want prices to come down. That does not mean prices come down. And we don't want prices to come down. We just want them to increase at a much slower rate than they have been recently. If you have any questions about inflation or real estate, give me a shout.