Stagflation Causes Higher Prices and Fewer Transactions

Supply and demand are out of sync, and builders can’t swing hammers fast enough to keep up. Stagflation in the context of the housing market describes a combination of high inflation of the price for properties, and economic stagnation as reflected by a slow growth rate of properties for sale. The high demand for properties …

Stagflation Effects on Housing Demand

ASK COREY Q: Corey, what is the effect of stagflation on housing demand? A: Thank you for your question. Demand is connected to supply and price. Stagflation is a combination of economic stagnation and price inflation, both of which place downward pressure on demand. Housing demand therefore is very strongly affected negatively by stagflation. Stagflation …