Is our Current Inflation “Transitory?”

Coins stacked up indicting inflation

The Federal Reserve officials have described the current period of high inflation as “transitory.” In other words, “short-lived.” However, consumers I talk with and from my own personal experience, I see things differently. It’s interesting to note that a June survey of consumer expectations showed that median inflation expectations over the next 12-months jumped to 4.8%, the highest reading in history for a series that goes back to 2013. That’s a lot higher than the 2% level that the Fed considers healthy for a growing economy. Also, the consumer price index jumped 5.4% from a year earlier, the largest increase since the financial crisis.

I’m sure you’ve noticed that prices for almost everything are increasing however it seems that at the same time, we are running out of many things from available houses, computer chips, building supplies, used cars, and even paper stock.

All of you heard the stories of crazy bidding wars for houses. We’ve seen it here in the Lakes Region, and it’s happening all around the country. We sold one property recently (a non-waterfront) for $220,000 over the asking price. While that may be the exception, so many Realtors® are reporting bids well over the listed price. I’ve heard that in a few hotspots in Texas, Realtors® have brought in food trucks and coffee vendors to make the lines more tolerable at open houses.

Vacation rentals are going crazy! Talk with the rental companies in the Lakes Region, Airbnb,, VRBO, and Availability is extremely tight trying to find a quality weekly rental in our area during July and August it’s next to impossible. CNBC reported a home in the Hamptons rented for the summer for $2 million! In popular resort towns, nationwide many rentals are fully booked.

How about the price of gas? My office Manager just came home from California yesterday and reported the price of gas at $4.40 a gallon. Think of what these increases have done to shipping costs.

Have you tried renting a car recently? The Labor Department reported they skyrocketed 87% in the past 12-months. CNN reported Orlando Rental Cars at $225 to $350 a day. In Maui, the cost was reported at $725 a day for a cheap car. That’s not the weekly cost! How about a sport utility vehicle in Arizona for $700 a day. What a bargain.

Try building a deck lately, never mind a house? Lumber prices rose approximately 240% since 2020. Advantec plywood is at $113 a sheet. I paid $35 a sheet in 2006. 2x4x8 studs were up to $12 each, although today it dropped to $6.90 a stud…a nice improvement. This past year’s surge in lumber prices had added $35,872 to the price of an average home. Keep in mind that lumber usually accounts for 20% of the cost of the project. Think about the other 80% costs they’ve skyrocketed also.

Paper prices are up 40%. We found this out recently when we printed our brochure. Plus, there’s a shortage of paper nationally.

Copper prices topped at $4.90 per pound for the first time ever in May of 2021. Scrap copper prices have more than doubled since the pandemic began. Plumbers & electricians can’t believe the increases.

Most Americans don’t realize shipping rates have gone up close to 50 % higher than last year. Food, steel, raw materials, boats, cars, appliances, etc., all are seeing price increases. Used car and truck prices leaped 45% over the past 12-months, according to the Labor Department.

Unfortunately, the large run-ups we see on the inflationary front create huge economic distortions, like why we’re running low on everything. Make no mistake; inflation is the hidden tax it will eventually push millions of Americans down.  The ultimate damage will be reflected in our currency which is slowly collapsing. With the increased money printing, increased debt, and stimulus programs implemented involving trillions and trillions of dollars, we are lulled into the belief that the dollar today is worth the same as it was last year. However, the monetary base has exploded, the dollar doesn’t buy what it used to, we have tons of public debt to deal with, and it seems like we’re closer to the beginning than the end of this inflationary spiral.

Have you noticed lately that Americans have gone wild? It’s almost like a frenzy. A crazy run-up in house prices followed by rampant speculation as everyone tries to keep up with the “get rich quick” stories we read about.

Did you know that American’s opened more than 10 million new stock brokerage accounts last year? Look how fast Robinhood has grown where they lure young traders, sometimes with devastating results. Look at the huge number of individuals who invested speculatively in Gamestop. There was a 2,000% increase in the sale of highly speculative penny stocks this year over the previous year. Look at how at how many companies are going public this year. There were 480 IPO’s in the US in 2020, an all-time record, a 106.9% increase over 2019. However, for 2021 for the first 6-months, it has already eclipsed the 2020 record.

This brings me to another sign of huge inflation and a potential currency devaluation…currency speculation. Yes, we are seeing it today with individuals piling into cryptocurrencies at unprecedented numbers. Total money in Bitcoin hit $1 trillion recently. It rose to almost $63,729, and now it’s at $32,954  Ethereum, the second-largest crypto, soared above $4,196 for the first time. However, it dropped to $1985 recently. Tether, the 3rd largest crypto, has all kinds of credibility issues. A recent warning from the Boston Fed President calling it a potential financial stability risk doesn’t help the crypto industry.

The things people are speculating on get wilder every day—crazy prices for digital artwork. Outrageous prices of “collectible sneakers,” record art painting sales, and other speculative investments are all increasing due to inflationary pressures.

I can remember when I started in Real Estate in the Lakes Region in 1976…from 1977 to 1981, cumulative inflation was over 50% in 5 years! Back then, we thought prices were going up but what really was happening was our currency was collapsing. In fact, the dollar nearly ceased to function as the world’s currency back in 1978.

So why can’t the government just stop inflation as it gets worse? No one at the Fed or higher government levels are willing to do what Paul Volcker did at the time in 1981. I was marketing Broadview Condominiums, and he raised interest rates dramatically. It set us up for two decades of prosperity; however, it was extremely painful in the short term for many businesses. I think the sad truth is that American’s aren’t willing to suffer any short-term pain, so the government and political leaders will continue to pacify with more debt, stimulus, and bailouts making matters worse. It’s like feeding candy to children or putting helium into the economy. It’s a temporary or “feel good” solution to a problem that’s not going away.

So is inflation “transitory,” as the Central Bank suggests….only time will tell.

Frank Roche, President of Roche Realty Group, Inc. with offices in Meredith and Laconia, NH

This article was written by Frank Roche. Frank is president of Roche Realty Group with offices in Meredith and Laconia, NH, and can be reached at (603) 279-7046. Please feel free to visit to learn more about the Lakes Region and its real estate market.

Moving into new home young happy couple celebrating toast Champagne

Buying a Home? Follow These Tips & Tricks

Spring has officially arrived and launches the beginning of our spring selling season for real …

Read More →

How Marketing Real Estate Has Evolved

Back in the year 2000, the world was at the beginning stages of a major …

Read More →
Mount Washington, New Hampshire

New Hampshire — 30 Reasons to Move Here!

With lakes, beaches, mountains, forests, rivers, and the ocean for people who enjoy the outdoors, …

Read More →
New Hampshire Ski Resort

Ski Resorts in New Hampshire Are Ready for Spring Skiing!

It’s been a good week, and mother nature hit our region with a blanket of …

Read More →
Market Trends

Real Estate Market Trends to Follow

I’ve been pulling up some current research on the real estate market on a national, …

Read More →
Carol Mattice

Roche Realty Group Welcomes Carol Mattice

Meredith — Frank Roche, President of Roche Realty Group, Inc, with offices in Meredith and …

Read More →
Kevin Shaw - Roche Realty Group

Kevin Shaw of Roche Realty Group is Top Producer for 2022

Laconia— Frank Roche, president of Roche Realty Group with offices in Meredith and Laconia, recently announced …

Read More →
Lisa Lewis

Lisa Lewis Joins Roche Realty Group

Meredith — Frank Roche, President of Roche Realty Group, Inc, with offices in Meredith and …

Read More →
Wanda Keenan

Wanda Keenan Joins Roche Realty Group

Meredith— Frank Roche, President of Roche Realty Group, Inc. with offices in Meredith and Laconia, …

Read More →
Land for sale

Buy Land in New Hampshire — They’re Not Making it Anymore

The science is in and the more trees a state has, the happier and less …

Read More →
The Price of Real Estate

Did The Price of Real Estate Increase in Your Town?

Everyone’s always interested to see how their real estate values have performed over the past …

Read More →
Laid off employee in recession

Are We Headed into a Recession?

It’s pretty big news lately; Microsoft, Amazon, and other tech companies have laid off more …

Read More →
Price Reduced

2022 vs. 2021 — Is The Lakes Region’s Frenzied Market Over?

It’s that time of year to provide all of you with an update on real …

Read More →
Roche Realty Meredith

Roche Realty Group Reports a Record of $181 Million in Sales

               Meredith- Frank Roche, President of Roche Realty Group, Inc, …

Read More →
Hillside Inn Winter

12 Things To Get You Through The Winter Months

On December 21st, the winter solstice marked the start of when days will begin to …

Read More →
Housing Inventory Lacking - Lake Winnisquam, NH

Lake Winnisquam, NH’s 4th Largest Lake is in Strong Demand

There are literally 273 lakes, ponds and rivers to enjoy in New Hampshire’s Lakes Region. …

Read More →
Interest Rates

Will We Ever See 1980s Interest Rates?

I was with a Realtor® friend of mine this past week, and we discussed what …

Read More →
Hikers overlooking the lake in New Hampshire, voted "Best State to Live in America" in 2020.

Squam Lake — a Lakes Region Treasure

This past summer, I was invited for lunch and a nice boat ride around Squam …

Read More →
Shop Local New Hampshire

Small Business Saturday in New Hampshire!

We have many things to be thankful for here in New Hampshire, plenty of natural …

Read More →
Couple downsizing to smaller home

Does Downsizing Your Home in Lakes Region Make Sense?

There are many things to consider when planning to sell your home to downsize into …

Read More →
Newfound Lake, New Hampshire

Newfound Lake is the 8th clearest lake in US

Newfound Lake is the 8th clearest lake in the United States New Hampshire has a …

Read More →
Echo Lake New Hampshire

New Hampshire Rankings are Impressive!

New Hampshire has always been fortunate to land in many of the country’s top 10 …

Read More →
Lakeside at Paugus Bay

Impressive New Construction in the Lakes Region

For new construction sales in New Hampshire’s Lakes Region, 2022 has shown very impressive results. …

Read More →
Inflation and housing prices

How Inflation Impacts Lakes Region Housing Prices

I was out with a friend this week on Squam Lake, and we were talking …

Read More →
Picture of author in the Grand Canyon

Is Lake Region Real Estate Drying Up Like The Southwest?

I just returned from a trip to Nevada, Arizona, and Utah this past week. Put …

Read More →
Brook Hill at Meredith: New luxury homes in Meredith, NH

Brisk Sales at Brook Hill in Meredith

Meredith— Sales at Brook Hill, a new luxury townhouse community in Meredith, have been exceptional …

Read More →

Impressive Sales at Lakeside at Paugus Bay

Laconia— Sales at Lakeside at Paugus Bay, a new luxury waterfront condominium community on Lake …

Read More →

Four Decades of Change in Lakes Region Real Estate

We were talking in the office the other day regarding how much the real estate …

Read More →
Supply and demand graph, real estate housing

The driving forces in the demand for NH housing

It is no secret that our country has seen some incredible growth in the real …

Read More →
Holderness, NH

Holderness Bridges Big Squam and Little Squam

Holderness is a lakeside community in the foothills of the white mountains on New Hampshire’s …

Read More →
high inflation

Energy & Ukraine Crisis Compared to 1970s Inflation

Russia’s invasion of Ukraine has emerged as a black swan event rattling the world during …

Read More →
Tilton, NH

Tilton — The Gateway to New Hampshire’s Lakes Region

Tilton, New Hampshire, is considered the gateway to New Hampshire’s beautiful Lakes Region because of …

Read More →
Map of USA: How Real Estate Trends affect the Lakes Region

How Real Estate Trends Affect the Lakes Region

New Hampshire’s Lakes Region & New Hampshire Can you believe a new analysis from Zillow …

Read More →
Laconia NH

Laconia, NH — A City on the Rise

The 17,000 resident “City on the Lakes” is nestled on the shores of three of …

Read More →
Two ice sailing enthusiasts on Lake Winnipesaukee.

Waterfront Sales Activity and Real Estate News

Here’s an update on the waterfront sales activity that we experienced over the past two …

Read More →
Tuftonboro, NH

Tuftonboro — “The Diamond in The Heart of New Hampshire”

Located just west of Wolfeboro, Tuftonboro is called “The Diamond in the Heart of New …

Read More →
Aerial view of Lake Winnisquam and Sanbornton, New Hampshire

The Rural Character of Sanbornton, New Hampshire

Sanbornton embodies all that one expects to find in an old New England town. This …

Read More →
Castle in The Clouds is one of Moultonborough's largest attractions.

Moultonborough’s 66 Miles of Shorefront Captivates

By landmass Moultonborough, NH is the largest lakefront community in the Lakes Region with 59.7 …

Read More →
Kevin Shaw - Roche Realty Group

Kevin Shaw of Roche Realty Group is Top Producer for 2021

Laconia— Frank Roche, president of Roche Realty Group with offices in Meredith and Laconia, recently …

Read More →
Wolfeboro, NH — The Oldest Summer Resort Town In America

Wolfeboro, NH — The Oldest Summer Resort Town In America

Wolfeboro: a Brief History Nestled in the foothills of the White Mountains and on the …

Read More →

Roche Realty Group Reports Record of $170 Million in Sales

Meredith- Frank Roche, President of Roche Realty Group, Inc, with offices in Meredith and Laconia, has …

Read More →
Meredith NH

Gilford and Meredith NH – How Do They Compare?

There are 25 towns and cities comprising the Lakes Region. This week I thought I …

Read More →

EM Heath, LLC Acquires 1084 Union Ave in Laconia

The future of Ace Hardware EM Heath LLC in Laconia became solidified this past week …

Read More →
Roche Realty Group Sells Landmark Commercial Building in Gilford, NH

Roche Realty Group Sells Landmark Gilford Commercial Building

Gilford- One of the most visible, historic landmark commercial properties in New Hampshire’s Lakes Region …

Read More →
New Commercial Constructioin in Lakes Region

Commercial Sales Increasing in the Lakes Region

Recently I’ve been outlining the sales activity for residential, waterfront, and multi-family apartments in the …

Read More →
Laconia NH Commercial Building Sale

New Owner for 8,447 Sqft. Commercial Building in Laconia

Laconia— Exciting news for the downtown Laconia district. Another substantial commercial building, including approximately 8,447 …

Read More →

Strong Demand for Multi-Family Apartments in NH’s Lakes Region

Last week I was driving through Loudon Road in Concord in the busy heights area, …

Read More →
NH Lake

Area Lakes Show Considerable Appreciation

Below you will find data and insight into what’s happening in sales activity on 8 …

Read More →
inflation in shopping center / grocery store

More Inflation Concerns

More Inflation Concerns I submitted an article a while ago titled “Is Our Current Inflation …

Read More →
Alpenrose Village Retail Center located at Rte. 11 B / Rte. 3 in Weirs Beach, Laconia

Roche Realty Group Sells Alpenrose Village Retail Center

Laconia, NH – Tom Drouin of Roche Realty Group in Meredith represented both the seller and the …

Read More →

Leave a Comment