Low taxes, low interest and high debt spending inevitably leads to periods of high growth , but then there are market corrections and slow growth, as the market pays off those debts and consumption goes down. With inflation high due to an influx of higher wages post pandemic to allure back workers and higher minimum wages and from some other higher costs related to the deficits in the supply chain, consumer confidence and spending is down. Feds are correcting the inflation with higher interest rates, all of this nullifies the gains in wages. Rich get rich. We should see a drop in housing, but with low supply and slow housing development, prices may not correct as far as they should.
Redfin’s chief economist says the housing market correction has begun—and things are going to get worse before they get better
Better for whom? Sellers? People wanting equity to flip? Buyers either pay high prices or high interest rates. Personally, I would rather pay high interest rates because my property taxes would be lower for a cheaper house, and I could probably guarantee being able to refinance in 5-10 years at a much lower rate.
https://fortune.com/2022/07/03/redfi...dictions-2022/
US Consumer Sentiment Slumps to Record Low on Rapid Inflation
https://www.bloomberg.com/news/artic...inflation-woes