Looking For Wisdom

by | Sep 5, 2023 | Uncategorized

“He who knows nothing is closer to the truth than he whose mind is filled with falsehoods and errors.” Thomas Jefferson

In a world of endless information and conflicting opinions, it can be an arduous task to discover the truth. Our best reference is history.

A good example in forecasting tomorrow’s housing market is to review economic policies from 60 years ago. The Great Society, introduced in 1964, brought high levels of government spending and regulations causing a scarcity of goods and runaway inflation.

Government interference continued until 1980 when inflation was in the 20% range and mortgage rates near 17%. A new direction was crucial. President Reagen, House Speaker Tip O’Neill, Senate Leader Howard Baker, advisors Laffer, Kudlow, Moore, plus Federal Reserve Chairman, Paul Volker, implemented supply-side theory economics. The result was 20 years of unprecedented economic growth and prosperity.

Today, the government is at work again with similar policies from the 1960’s and 1970’s. The outcome is the same – inflation, supply shortages, high interest rates, and weakened buying power, with more to come.

A solid hedge against inflation is to be invested in hard assets, real estate is ideal. Long-term, home values have outpaced inflation by half-a-percent. Owning as much house as you can afford is a smart move.

High interest rates come with inflation, but they will eventually go lower, and when they do, refinancing is an option. Prices are a little soft now, although when rates go down, demand increases and home values go up.

History always leads the way, to ignore it is foolish. Research gives us knowledge, while embracing knowledge gives us wisdom.

Ratchford Group’s home buying and selling process is proven to deliver dreams. We use experience coupled with knowledge to establish wisdom that we apply so you have a better outcome.

We invite you to call or text anytime, 605.359.4100.

Tony Ratchford, licensed Broker, Author, Coach, Manager, and Sales Consultant