Real Estate in Louisville and Inflation

The next several blogs and articles will be about economic indicators.  Particularly GDP, inflation and payroll.  All too often in the Real Estate business we focus on home sales which is like focusing on the tail instead of the horse! GDP, inflation and non-farm payrolls determine what occurs in Real Estate markets.  THE TREND of all are excellent indicators of prices, interest rates, home sales and home values. 

Today we are going to look at inflation.  Everyone knows what inflation is; it is the price required to buy anything.  High inflation (and taxes) takes away a lot of our disposable income. Inflation can be all over the board, however. Core inflation is inflation without food and energy.  All items are, well, all items.  Rent is the GENERAL cost of renting.  Inflation is not all bad.  The value of our homes and savings usually rise with inflation because interest rates rise and there is a strong demand for goods and services.  Again, the trends are the key.