Home prices aren’t the only cost that has been soaring over the past few months. It seems like just about everything, from rental cars to puppies, has gotten more expensive—and that could help determine whether home prices have more room to rise.
Inflation of goods and services rose 5% in May compared with the previous year, according to the Consumer Price Index. That means many household items and services now cost about 5% more than they did just 12 months ago. In other words, workers would need to earn 5% more than they did a year ago to keep up. This comes after years of inflation hovering around 2%.
Rising inflation could also affect the hot housing market. So will it be the force that cools down the double-digit price growth—or what catapults the cost of buying a home even higher into the stratosphere?
“We don’t know if these are temporary adjustment pains as the economy opens back up or if this signals a more…