BUFFALO, NY — Inflation is affecting the lives of many across the nation — that means the cost of living is also rising.
Fred Floss, a professor of economics and finance at SUNY Buffalo State, says the most concerning increase we’re seeing in Western New York is higher grocery prices.
Floss says the fact that items like eggs have increased over a dollar over the last six to eight months is worrisome. He says those who are in the bottom income levels in Western New York will be impacted by that the most. He adds that housing prices in the area have also gone up by 10-15%, depending on where one is.
“Buffalo is still one of the cheapest places in the country to buy a house,” said Floss. “So when you talk about houses going, you know, last year, and there’s a huge range, but going for maybe $150,000-160,000, those houses now look to be selling for about $200,000.”
Floss says around the country, because of higher interest rates, housing prices have peaked and the values are starting to go down. He says the danger he sees is that people have overbid over their house due to a fear of being unable to buy a house with increasing interest rates, and now if one has a variable rate mortgage, the houses will be more expensive and other purchases will be more expensive.
This may cause people to question if they can afford the house they just bought. His advice? Not to panic and try to sell it again, rethink your budget and mortgage. But there’s hope for prices to decrease soon. Floss says we’re moving in the right direction for inflation to decrease, but we also need to worry about how to get the economy growing again.