Building Materials prices
March PPI numbers are in and inflation in building materials is still prevalent. Read the report from the US Bureau of Labor Statistics here.
All the uncertainty with the collapse of several banks related to poor risk management is not translating into interest rate cuts at this time. With uncertainty in the markets, traditionally people have desired to diversify with hard assets like Real Estate. Due to the growth in population in Middle Tennessee coupled with a persistent inventory shortage for residential properties, there is no better time to add to your real estate portfolio if you are interested in long term consistent growth. Based on a fifty year trend line, the average rate of appreciation is approximately 4%. Again I emphasize this is a long term investment and the craziness in price appreciation during 2021 and 2022 is not the norm.
The above graph is from the latest pricing information and published by the National Association of Homebuilders. Here is the eye on housing blog entry.
