The "future demand" remain hight and prices also remain high as indicated by both Dr. Torres and Dr. Gaines. It begs the question, how long can this market sustain this demand or high mortgage prices? When we look at salaries we believe there has been an increase. However, almost everything else has also increase; hence we have an influx of inflation in this nation.
Hello! Thanks for your question. According to Dr. Torres, demand is expected to weaken due to the increase in home prices and mortgages. And yes, inflation in some cases is outpacing wage increases, causing purchasing power to decrease. However, it is unknown if the recent increase in prices will be permanent or temporary. If temporary, the recent high levels of inflation should start to decrease back to 2 percent annual levels that are aligned with the Federal Reserve’s inflation goals. Now if permanent inflation will remain above 2 percent, causing households to ask for bigger wage increases aligned with higher inflation expectations, that would cause firms to raise their prices since they have to pay higher wages to their employees. Then inflation starts to become a problem. Still, the expectations are that inflation is temporary due to the supply bottlenecks facing the economy after reopening it and should dissipate going forward.
The "future demand" remain hight and prices also remain high as indicated by both Dr. Torres and Dr. Gaines. It begs the question, how long can this market sustain this demand or high mortgage prices? When we look at salaries we believe there has been an increase. However, almost everything else has also increase; hence we have an influx of inflation in this nation.
Hello! Thanks for your question. According to Dr. Torres, demand is expected to weaken due to the increase in home prices and mortgages.
And yes, inflation in some cases is outpacing wage increases, causing purchasing power to decrease. However, it is unknown if the recent increase in prices will be permanent or temporary. If temporary, the recent high levels of inflation should start to decrease back to 2 percent annual levels that are aligned with the Federal Reserve’s inflation goals. Now if permanent inflation will remain above 2 percent, causing households to ask for bigger wage increases aligned with higher inflation expectations, that would cause firms to raise their prices since they have to pay higher wages to their employees. Then inflation starts to become a problem. Still, the expectations are that inflation is temporary due to the supply bottlenecks facing the economy after reopening it and should dissipate going forward.
Texas has too much land this won’t last