Image above is the cheapest gas station chain in Seattle area in one of the cheapest suburbs of Seattle: Lynnwood. I took this picture today on my way to the train station.
And with the current situation around Iran and Yemen and Saudi Arabia having trouble exporting oil these prices are not likely to drop any time soon. I would say that the opposite is more likely. I think we are going to see higher gas prices by the end of this year.
Fed raised rates by a quarter percent which is not a good sign going into the mid term elections this November. I wonder if this means that they had to do this or that they don't think that it is going to make any difference to the elections outcome.
Either of these possibilities is not great. Higher rates are not going to help the economy. And these are particularly bad for the real estate market. I just checked on the prices of the homes in our area and the homes that were one and a half million dollars at the start of the year are now down to one point three million.
Two hundred thousand dollar drop in nine months of this year on a typical home in our area is a significant drop. Higher rates are going to put even more pressure on the home values.
There are also more news of layoffs at technology companies in Seattle area. These tend to be the highest paying jobs and the effect on the local economy and home values is going to be very negative.
I think that we might be going towards a recession after the midterm elections in America.
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