It’s natural for people to wonder how this will all play out.
The Fed raising their rate until they crush inflation (and everything else), home prices are higher than just about anyone can afford, and inventory levels so low that prices will probably keep trending higher too.
How could this all stay afloat?
We are already in the midst of the greatest wealth transfer in the history of the world. Unless there are changes in the law, those who have accumulated between $5,000,000 and $11,000,000 will be expediting their distributions over the next three years to save on taxes before the limit is lowered in 2026:
https://www.irs.gov/newsroom/estate-and-gift-tax-faqs
The free-and-easy money has already been flooding into our real estate market. Back in the old days, the cash buyers always demanded a discount – but today the craziest sales are to buyers paying all-cash.
With the gift and estate taxes changing in 2026, it should continue, and possibly increase.
Just to be clear theres two ways to slow down inflation.
1. The fed raises interst rates which increases the value of money + decreases the money supply.
2. The gov stops printing and spending on XYZ initiative which has the same effect of increasing the value of money because theoretically the money supply decreases.
Just pointing put that although all the talking heads want to blame the fed for increasing interest rates. They’re reacting to out of control gov spending.
Also consider if gov spending just increases in proportion to fed rate hikes nothing changes + inflation just continues at the current rate.
Just what the world needs. More rich, entitled losers who have created nothing and living off the hard work of mommy and daddy.