Real estate growth and the US Inflation Index. Everything in the economy, from the local real estate market to leading economic indicators such as the unemployment rate, falls into a predictable pattern when you know how to measure and analyze the right information.
The US inflation index is not the rate at which every single product increases in price when compared to the previous year. After all, some products will increase at higher rates than others (oil prices, for example), while other prices actually rise and fall like real estate prices. US Inflation Index as Average Think of the inflation index as an average. It is the average rate at which goods or services are increasing in price when compared to the same time last year.
The US inflation index works the same way the New York Stock Exchange (NYSE) does. It is tied to a number of goods and services that are constantly tracked. For us, Growth Maps, and for many real estate professionals, your ROI must be above the US inflation index so you have lower US Inflation Index helps the Fed know when to raise and lower interest rates and is one of the most important economic barometers to any modern economy. Since with lower rate, there is opportunity for growth and real estate growth. Ideally, the inflation index should stay near the prime rate, where to set the prime.
The feeding frenzy in the housing market should have been contained sooner and been more apparent in the inflation index, but it wasn’t. Why? Because of local social-economic growth data. And because of food and energy. You can also find out more info about inflation and the BLS Inflation Calculator at www.bls.gov/data/inflation_calculator.htm
And Average Inflation Rate and Us Inflation Rate by Year can also be found at the BLS.
For more information, watch our free demo video on our homepage, and download your FREE eBook titled: “What’s Next for Commercial Real Estate Technology: Leveraging Technology and Local Analytics to Grow Your Commercial Real Estate Business” at https://www.growth-maps.com/free-ebook/
Your comments are most welcome, and I appreciate your feedback.