2.2

Hi there DFW! Inflation is often defined as a sustained   increase in prices for a broad range of goods. In this case, home prices!

According to the S&P Dow Jones Indices released latest data today for   December 2014 shows a slight uptick in home prices across the country. Nine cities reported monthly   increases in prices.

“The fastest year-over-year gains were in San Francisco and Miami. Twelve cities including Cleveland, Denver and     Seattle, saw prices rise faster in the year to December than a month earlier. Las Vegas led the declining annual returns with 6.9%, down from 7.7% annually.”

Interestingly, housing is generally viewed as a good asset when it comes to inflation because it doubles the value of the house which makes a very good investment, you may even get a 4 times higher return of investment in the future. Of course, the economy is dynamic, there are a lot more factors that affect house prices but when the influence of other   factors is small, more money moving around more quickly will increase the price. So with inflation, housing prices tend to rise.

Online resources: Home Prices Grew at Twice the Rate of Inflation in 2014. http://rismedia.com/2015-02-24/home-prices-grew-at-twice-the-rate-of-inflation-in-2014/?utm_source=newsletter&utm_medium=email&utm_campaign=eNews

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