Talk of The Villages Florida - View Single Post - When Fed lowers rates... house prices increase?
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Old 08-09-2025, 01:48 PM
jimjamuser jimjamuser is offline
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Originally Posted by mtdjed View Post
We all have an expectation that we will continue to have an increasing standard of living. If that increase is due to increased skills and promotions, we move up the ladder. If that increase is cost of living it is inflation. More taxes, higher House prices is inflation and thus need for more cost of living increases. Fed rates lower allow for higher house/car/commodity prices and higher inflation. That means need for more cost of living increases.

The beat goes on. The people outside of the Cost of Living increase adjustments continue to fall behind. They then look to higher home prices when they sell, which keeps the cycle going.

You can't beat it, but you can ride the wave smartly.
The problem is that we have not seen an INCREASE in the standard of living since about 1970. Most people today feel they are not as well off as their parents - and their children will be LESS well off than they are. Outsourcing to AVOID labor unions began this problem about 1970. Many people believe that unions are a PROBLEM. They have been mesmerized into believing this, but it is NOT true.