Here are a few stats to give you a perspective on today’s inflation.
Inflation seems to be on everybody’s mind these days. In fact, I just returned from the Keller Williams Family Reunion, where we discussed some very interesting statistics related to inflation and the market. If you’re a person of a certain age, you’ll remember the inflation crisis back in 1989. Let’s compare what inflation looked like back then to what it looked like in 2021.
Back in 1989, the average price of a car was $15,350. In 2021, the average was a little over $46,000. That’s a 30% increase!
Gas prices are also a hot-button issue today. In 1989, the average price for a gallon of gas was 97 cents. In 2021, a gallon of gas cost $3.51. In areas like New York, gas can be as much as $4.39.
In terms of housing prices, the average home price in 1989 was $94,000. In 2021, the average home price was $346,900. That shows the price of a home has gone up nearly 60% in that short period.
A mortgage for an average home in 1989 was $825. Last year, that average was $1,455.
In 1989, interest rates were around 11%, whereas, in 2021, interest rates were around 4%. Even if they go up to 4.5% this year, that’s still a historically great rate.
I’m sharing these numbers with you to give you a perspective on where our market is really at currently. Inflation makes us all feel nervous, but our unemployment rate is falling too, which means people can still afford homes. Don’t be afraid to get out there and look at what’s available on the market, and be sure to speak with your Realtor to find out your affordability index.
If you have any questions about what’s going on in today’s market or are thinking of buying a home, don’t hesitate to give me a call or send an email. I’d be happy to speak with you.