Triple G

DennyT Loc: Central Missouri woods

Just my thoughts and nothing more. It seems prices always go up and very seldom come down.
The exception seems to be commodities such eggs,milk , gas.
It is because the rest is manufactured or processed somehow and when those “ manufacturers see the people are willing to pay the price - “ why lower it. ???? That is through the whole production chain.

For example. To keep up with high inflation. Workers want higher wages but when inflations slows back down I never hear wages going backing off.

Blurryeyed Loc: NC Mountains.

No, in fact they continue to rise over current levels, were they not rising the inflation rate would be zero or negative. What will be most important for many families is what the FED does with interest rates as it greatly effects the affordability of housing.

Blurryeyed Loc: NC Mountains.

It's not that simple Denny, if that were the case there would always be a producer willing to sell at a price that although not as profitable on a per item basis would see more profit in increased market share by selling comparable products at a lower price point than his competitors.

Producers are still adjusting to increases in energy costs, labor costs, increases in supplies and raw materials, it is not simply greed as you suggest that will keep prices higher than they previously were.

DennyT Loc: Central Missouri woods

You need to find a different horse to right rather than your one trick poney.
No one speaking of housing cost.

Triple G

When producer prices decline, but finished products do not, it!s profit taking not inflation. Interest rates and housing is an issue, but more on the supply side. We have a severe shortage in some areas and surplus in others due to migration of US population (demand). We had a 12% mortgage with a mandatory 20% downpayment for our first home so seeing 7% interest rates don't seem too outrageous when being used to cool off the c***d interruptions and pent up demand.

Blurryeyed Loc: NC Mountains.

Denny, go back to bed.

DennyT Loc: Central Missouri woods

Did I use the word greed .? No !stay on track please.

Yes producer adjust to energy and labor cost
In energy case despite lower energy cost prices very seldom recede. And labor cost never goes back when inflation slipstream.

Learn !! A contract ( anything bought and sold- not just a paper contract) is always executed between a “ willing buyer” and a “ willing” seller. No green involved .

Blurryeyed Loc: NC Mountains.

I disagree, 2 years ago the mortgage payments on a $500K house were in the neighborhood of $2500/mo, now it is closer to $5000/mo. During the p******c we had another housing boom, personally I purchased a home in 2020 that the insurance company now insures replacement value at 3X my purchase price. in the construction industry the price of wood continues to be somewhat volatile and labor costs have increased and will not be going down. Much the same can be said for your subcontractors such as plumbers and electricians. As far as the existing home markets, there are two reasons that the prices will not go back to pre boom prices, one is that any home sold within the last couple of years would have to be sold at a significant loss and the other reason is even in my situation where I could realize a significant gain, I would have to replace my house and no matter how you slice it I would be paying a similar price as my buyer unless I choose to downsize or move to rural Ohio.

I purchased my first home when Carter was in office so yes, I too have seen similar and as I recall higher mortgage rates than those you speak of, but unless there is a significant housing bust you will not see much improvement in the ability of young people and first time buyers to purchase a home soon.

US census bureau estimates that 47% of 18 to 29 year olds are living in their parent's homes and roughly 15% of 25 to 34 year olds are also living in their parent's home. Nothing will effect the affordability of housing more than the normalization of interest rates to pre-p******c levels.

https://www.businessinsider.com/millennials-living-at-home-as-an-adult-2023-1?op=1

Blurryeyed Loc: NC Mountains.

Has there been a significant decrease in producer prices? and if so how do they compare to pre-p******c prices?

Triple G

Triple G

Mortgage rates and housing market have no norm since 2008 great recession. Banking and mortgage lending are impacted by all of the artificial home ownership incentives in place.

You sound like a bleeding heart liberal about first time homeowners. There are many programs to help that weren't available to us.

https://www.jchs.harvard.edu/blog/what-it-will-take-sustainably-increase-homeownership-rate

Blurryeyed Loc: NC Mountains.

So, according to the PPI graph producers inflation has leveled off at near zero, that is certainly different than an earlier suggesting that it is costing them less to produce. You did not actually say that they are reaping profits from falling production costs but you did put that topic out there and that clearly is not the case because the index does not indicate that there has been a reduction in the cost to produce, simply it would seen that the inflationary pressures moving forward are being mitigated.

Blurryeyed Loc: NC Mountains.

Well although that was a summary of the paper I saw no link to his paper. I am not going to comment on his suggestions because although I do agree that we need to address the problem of unaffordable housing it sounded like his suggestions involve an entire new class of t***sfer payments.

DennyT Loc: Central Missouri woods