What impact will inflation have on housing prices?
China's housing prices have gone out of the bull market for 20 years, from several hundred yuan per square meter to several hundred thousand square meters. House prices have undergone earth-shaking changes, and people's monthly wages have risen from tens of yuan to tens of thousands of yuan, but the same increase is thousands of times, but the different base leads to the dilemma of not being able to afford a house. Riding a bull and seeing a bear think that inflation is part of the reason for the rise in housing prices. A lollipop that used to be a few cents is now a few dollars. Once molecular money and ten cents have withdrawn from the main stage of the market, this is actually the impact of currency depreciation brought about by inflation.
Inflation is a problem that a country cannot completely solve, and it can only be suppressed by some economic means. With the rapid development of a country, social wealth will continue to increase, leading to more and more money in people's hands. This is why some countries in Europe and America have tens of thousands of banknotes, and some countries in Africa have hundreds of millions of banknotes. On the one hand, domestic prices are rising because of inflation, and on the other hand, currency is worthless because of foreign exchange control. Riding an ox to see a bear thinks that inflation will increase house prices and also affect the increase of bank loan interest rates, which is two-way.
When inflation rises rapidly, people's money will depreciate more and more. To avoid this phenomenon, people will consider investing in the real estate market. Money itself is worthless, but it can be exchanged for the equivalent of any commodity. When investors have more monetary funds and cannot obtain more asset appreciation through other channels, they will consider investing in the real estate market with rising house prices. Riding a bull and watching a bear think that the rate of buying a house will greatly increase when inflation occurs. With this market capital, banks can regulate the currency, raise the loan threshold for buyers, thus further reducing the currency circulation in the market, which is also a way to control inflation.
Will house prices fall in the future?
First, housing prices will be divided in the future.
We must understand that the 10 gold of China property market is really gone forever. The future real estate market is about to undergo a very serious division, between cities and between houses. But on the whole, the future house price still retains the potential and space for appreciation, and the price will continue to rise. So there is no need to worry about the future decline in house prices, and there is no need to be afraid. Buying a house now will bring some losses to yourself.
Second, the cost has increased rapidly.
Whether it is a first-tier city, a second-tier city, or a third-and fourth-tier city with a net outflow of population. Land prices in these cities are rising year by year, and floor prices will double after each round of housing price increase. Floor price is the biggest cost involved in building a house. This biggest cost is constantly doubling. How will house prices fall in the future? What's more, other costs of developers are also increasing year by year, such as financing costs, development costs, design costs, labor costs and so on. Indeed, in the long run, housing prices in China will continue to rise.
Regarding the impact of inflation on housing prices, we can know that not only the price of vegetables is rising, but also our wages are rising. In fact, inflation is an insoluble problem. What we can do is to develop it better. And whether house prices will fall in the future. In fact, even if the house price will be lower, it will not be much lower. The specific reasons are all answered above, take a good look.