Stagflation Causes Higher Prices and Fewer Transactions

Supply and demand are out of sync, and builders can’t swing hammers fast enough to keep up.

Stagflation in the context of the housing market describes a combination of high inflation of the price for properties, and economic stagnation as reflected by a slow growth rate of properties for sale. The high demand for properties at any price is keeping inventory moving quickly — too quickly to allow new home builders and existing home sellers to fill the demand.

Though homebuilders continue to respond to the elevated demand, the number of homes being completed continues stagnate due to persistent supply chain problems, as reported by Bloomberg. “For want of a nail, the battle was lost,” as the saying goes, and so goes our economy. This stagflation is a headache for buyers and builders alike, but it’s a boon for sellers of existing homes. Demand is not going away; it’s a painful patch for our economy. Stagflation is a period when slow economic growth and joblessness coincide with rising inflation. As oil and gas hit record prices, Google searches for the term “stagflation” have spiked.#stagflation #newhomes

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Copyright © This free information is provided courtesy of L.A. Loft Blog with the information provided by Corey Chambers, Realty Source Inc, DRE 01889449; MPR Funding Inc NMLS 2000513. EAC22060702KT We are not associated with the seller, homeowner’s association, or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com, Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties are subject to prior sale or rental. This is not a solicitation if the buyer or seller is already under contract with another broker.

One Reply to “Stagflation Causes Higher Prices and Fewer Transactions”

  1. Tomorrow, we will post updated photos and videos of the amazing historic studio apartment condo unit for lease in Westlake near Downtown Los Angeles with tremendous character and views under $1,800.

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