It’s your Monday news dump on this December 13th, 2021…
Hawaii’s luxury real estate market is soaring to all-time highs, according to Hawaii Life’s Luxury Market Report…(CNBC)
In the first three quarters of this year, homes valued at $3 million or more saw sales volume rise 235% compared with the same period in 2020. Deal volume hit a record-breaking $3.7 billion
It’s not just real estate professionals benefiting from rising home prices. Local governments are benefiting as well and the Aloha State is likely to reap the biggest property tax boost, followed by those in Connecticut and Florida, according to a Fitch Ratings index. ..(Bloomberg)
Residential property taxes are the dominant source of revenue of local governments, making up more than 60% of their tax base. More than $350 billion municipal bonds are backed by a local government’s pledge to levy taxes on its residents to repay debt, according to data compiled by Bloomberg.
Just when you thought Hawaii couldn’t get any better…
Is the early 20’s the hottest housing market on record? Depends on how you look at the data according to Redfin…(Redfin)
While the current appreciation is an unprecedented event in terms of short-run appreciation, it is not the long, sustained growth that we saw in the 2000s bubble…Beginning in January 1997, prices were higher every month than they were in the previous month until July 2006, a nine-year and six-month streak. Although the year over year streak is more than nine years long as of August this year, the current month over month streak only began in February 2019.
Short-term nothing might ever beat 2020-2021. However, on a longer scale, it has yet to be determined how hot this current market is…
Is stagflation coming? Phil Gramm and Mike Solon think so. They believe President Biden’s policies are already causing prices to rise. It will soon stifle growth as well…(Wall Street Journal)
The mounting regulatory burden of Mr. Biden’s executive orders, his regulators’ open hostility toward America’s economic system, and the return to Progressive-era antitrust enforcement will stifle growth. All the ingredients will be present to turn the current inflation into stagflation.