Technology Real estate: Is inflation a boon to buy?

05:00  25 september  2022
05:00  25 september  2022 Source:   mieuxvivre-votreargent.fr

Jean-Pierre says $433 billion Inflation Reduction Act WILL fight inflation despite economic model

  Jean-Pierre says $433 billion Inflation Reduction Act WILL fight inflation despite economic model A new Penn Wharton analysis of the Manchin deal by the University of Pennsylvania concluded the package would 'very slightly increase inflation until 2024 and decrease inflation thereafter.'She called the deal, struck between West Virginia Democratic Sen. Joe Manchin and Majority Leader Charles Schumer 'historic legislation this is going to be a game changer for so many Americans.

What future for the French real estate market, disrupted by the inflationary period which has run since the beginning of 2022? For some sector experts, who have tried to answer the question, the coming months are likely to be complicated. "We can expect a drop in demand in the cities most impacted by the increase in credit rates," anticipates with the Figaro Immo Thomas Lefebvre, scientific director of better agents. According to other professionals in the field, this reversal is not abnormal, after three very flourishing years for real estate sales. While inflation should not decrease in the next twelve months, credit rates should continue to take off.

Inflation and wage data suggest US prices will keep climbing

  Inflation and wage data suggest US prices will keep climbing WASHINGTON (AP) — Inflation surged in June and workers' average wages accelerated in the spring — signs that Americans won't likely feel any relief from rising prices anytime soon and that the Federal Reserve will feel compelled to further raise borrowing costs. An inflation gauge closely tracked by the Fed jumped 6.8% in June from a year ago, the government said Friday, the biggest such jump in four decades. Much of the increase was driven by energy and food. On a month-to-month basis, too, prices surged 1% in June, the biggest such rise since 2005. Even excluding the volatile food and energy categories, prices climbed 0.6% from May to June.

No reversal of the real estate market in 2023

if they favor real estate transactions when they are low, the outbreak of rates should slow down sales. They should go back below the million bar within a year, at around 950,000, said the best agents. Even if the decline would not necessarily be important for the sector, the sale prices could melt. But not as snow in the sun either: according to previously cited experts, the decrease would reach 3% in the capital, over a year; Now is just just above 10,000 euros per m². " Paris is the example of the city in high offering. Since 2018, the number of goods for sale has soared 52%, "recalls Pierre Vidal, head of the research teams for best agents.

In the other major cities of France, it is the same downward trend. In the past twelve months, prices are expected to retreat by 2% in Lyon and 1% in Bordeaux and Toulouse, according to best agents. Quite simply because the offer is more or less important. Since 2018, the number of apartments for sale has jumped 12% in Laville Rose. The reasons for this increase in the offer are multiple: tightening of credit, the sale of thermal coatlines that are sometimes expensive to renovate. But if we compare these microbaisses to the increases in credit rates, it would be wiser to wait again before buying. "The year 2023 should not be the scene of a real reversal of the real estate market even if it should be less dynamic than in previous years," concludes Thomas Lefebvre.

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Biden wields Inflation Reduction Act against GOP as inflation rages on his watch .
The Inflation Reduction Act is now at the center of the White House’s messaging on inflation ahead of the midterm elections despite an uncertain time frame over when or if it might start reducing inflation. President Joe Biden has used Republican calls to repeal the Democratic spending bill to argue a GOP takeover of Congress would worsen the problem of high consumer prices.White House press secretary Karine Jean-Pierre told reporters Monday that Biden has “done the work” on fighting inflation.

usr: 1
This is interesting!