Inching closer to the 7% mark, the 30-year fixed-rate mortgage has climbed to 6.90%, up from 6.77% last week and notably higher than the 6.50% recorded a year ago, according to Freddie Mac data.After a period of smaller rate movements offering some relief to homebuyers, recent signals from the Federal Reserve hinting at delayed rate cuts have sparked an upward trend.Sam Khater, Chief Economist at Freddie Mac, emphasizes that strong economic and inflation data are driving this shift.

Have prices dropped significantly (back to 2018-2019 levels, even after adjusting for inflation)?

Second, and this is unique to Asheville, is that boomers are retiring there in massive numbers, and buying with cash more than other comparable markets, inflating prices everywhere.

Instead, they keep talking about needing “confidence” that inflation will reach their 2% target, when it is already there if you annualize recent monthly data.

For other replacements and cap ex, you can look up the typical useful life of any appliance or home feature and just do the math on replacement costs with inflation over 5, 10, 15+ years.

As it stands, your house essentially barely kept pace with inflation probably close to a negative real return when you factor that in.  

It’s TransitoryIn 2025, the apartment supply bubble will pop, fall off a cliff, come back to earth, whatever the metaphor you prefer to use… Permits for development, the last 3 years of inflated material / labor prices and much much higher interest rates has made the environment for apartment construction highly challenging.

I don't care if peddlers peddle appreciation/tax benefits/blah blah.If inflation is at 8% yoy, then appreciation of 3-4% in real estate yoy on average reduces your wealth.Thank you for this post.

Some other concepts to understand is that inflation is 3% currently. 

Additional 200future income is as accumulated losses get used up, and no mortgages on the properties, no depreciation (over 30yr holds), all income will be added to passive rental income, inflating the taxes in a year or two.