Phoenix MLS Predicting Lowest Median September Price in Nine Years (credit check, homebuyer)

[MN-Born-n-Raised]

Zippy. You are not alone in your thinking (Hyper Inflation is-a-comin). But I see deals after deals.

I had dinner at TGIF (Friday's) last night. They waitress said the only way they can get people out is with discounts. I asked, what percentage of the people have that buy-one-get-coupon and she said 80%. The other people where there for 1/2 price appetizers. We were there for both.

So deflation currently is happening on many items. Of course we can point towards things that are going up in price (used cars etc). Just go to Mexico and see the price of junky cars. It's amazing what they get for them. Not many can afford new. I diverge..

While Hyper inflation just may happen, I am not convinced. It seems you cannot make people buy things. Things don't go up much if people are unwilling to spend. AZ affordability in home ownership is amazing. But many many people that CAN buy are not.

Remember. 90% of the people have jobs. But if they fear getting laid off or their business lis osing money, they don't want to spend and that will prevent Hyper Inflation for the foreseeable future. If we ever get out of this mess and we still hang onto our wealth, then I can see where inflation takes off. I could be wrong but I sure the heck have not felt the effects of inflation.

[MN-Born-n-Raised]

"It's true that the costs of items like health care, education and transportation have surged. But the Fed studies a wide range of prices across the economy. Overall consumer prices -- excluding food and energy prices, which are volatile -- inched up just 0.9 percent for the 12 months that ended in August. That matched a 44-year low, according to the government."

and

"The Fed says a little more inflation might be just the thing to start a chain reaction that would ultimately create jobs -- and avoid a spiral of falling prices that could damage the economy."

From Unusual worry for economy: Is inflation too low? - Yahoo! Finance (http://finance.yahoo.com/news/Unusual-worry-for-economy-Is-apf-1253519994.html?source=patrick.net#y-article-hd - broken link)

[MN-Born-n-Raised]

Read this link! From washingtonpost.com

"As head of Ally's (formerly called GMAC,) foreclosure document processing team, 41-year-old Jeffrey Stephan was required to review cases to make sure the proceedings were legally justified and the information was accurate. He was also required to sign the documents in the presence of a notary.
In a sworn deposition, he testified that he did neither.
The reason may be the sheer volume of the documents he had to hand-sign: 10,000 a month. Stephan had been at that job for five years.

Now it appears hundreds of other companies, including mortgage giants Fannie Mae and Freddie Mac, may also be affected because they use Ally to service their loans. "

__________________________________________________ __________________________________________________ ______________________________

It seems that "100's" of companies used GMAC to process their foreclosures. It might take some time to work through this mess. The can could get kicked down the road if this blows-up and foreclosures stop being processed for a while.

[las vegas drunk]

The Fed has started there quantitative easing, i.e. printing money out of thin air backed by nothing. Gold is already started breaking all times records this week. Don't you guys think this is going to cause massive inflation, especially if the dollar crashes?

Forget $1,300, Gold Is Heading To $11,000 On Dollar Collapse « GCN News

[MN-Born-n-Raised]

Originally Posted by las vegas drunk

The Fed has started there quantitative easing, i.e. printing money out of thin air backed by nothing. Gold is already started breaking all times records this week. Don't you guys think this is going to cause massive inflation, especially if the dollar crashes?

Forget $1,300, Gold Is Heading To $11,000 On Dollar Collapse « GCN News

I didn't realize the source was GCN ("Genesis Communication Network"). Who are they???

I never heard of GCN but I have heard of GNC! GNC would say that vitamins are going to $1000 a bottle.

[rjrcm]

Originally Posted by las vegas drunk

The Fed has started there quantitative easing, i.e. printing money out of thin air backed by nothing. Gold is already started breaking all times records this week. Don't you guys think this is going to cause massive inflation, especially if the dollar crashes?

Forget $1,300, Gold Is Heading To $11,000 On Dollar Collapse « GCN News

Genesis Communications Network - Frequently Asked Questions

...GCN was developed to promote the importance of investing in precious metals....

Hmmm, they're not biased are they?

[Howard Roark]

No I don't. Not unless wages go up. Wages won't go up until the U.S. achieves wage parity with its trading partners, China and India, or some revolutionary technology (nuclear fusion, cure for old age, intelligence enhancing pills) is developed.

Originally Posted by las vegas drunk

The Fed has started there quantitative easing, i.e. printing money out of thin air backed by nothing. Gold is already started breaking all times records this week. Don't you guys think this is going to cause massive inflation, especially if the dollar crashes?

Forget $1,300, Gold Is Heading To $11,000 On Dollar Collapse « GCN News

[EnicAZ]

las vegas drunk,

Gold has done very well through this entire crash. It will be interesting to see what happens in the future. Low construction levels continue to hurt the homebuilding industries.

[Arushan]

What I see coming is stagflation. The signs are there.

[khuntrevor]

Originally Posted by EnicAZ

Howard Roark,



This is our stance at our sales office as well. As relates to the price of real estate, there will not be inflation unless wages inflate at the same time. There is no other way people coule afford to pay. What has been happening is a permanent loss of jobs in the American economy, and American labor now has to compete on a global marketplace. The only direction wages could go is lower.

There is actually more talk of deflation, than inflation. You are right about competition. Next time you check into a Motel 6, and pay 10 Dollars in taxes; consider this: For 10 Dollars per day, I have a hotel room with cable TV, maid, and hot water. I also have enough left over to have ZERO Deductible health insurance, that is good at hospital health bum rum grad at bumrumgrad.com, which is higher rated than any medical facility ever will be in Arizona, and I still have enough left over to pay my mobile phone bill.

Only 2.4 million people out of 64 million pay any income tax at all here, yet GDP growth is at 7%+ this year. I think these are things that the lawmakers and the people in the tourist businesses must realize. People have choices. The amount of money people are able to extort from snowbirds will never be enough to cover the massive amount of people on public assistance. DO THE MATH.

that being said, there is a lot of value in AZ property right now. Quite a bit better than prices in this emerging nation. No property taxes here, and HOA fees run about 6 cent psf per month.