How does the current inflation issue affect the real estate market?
Right now, the inflation rate in the U.S is up to 7%. Today I’ll discuss how inflation affects the real estate market.
Inflation affects the real estate market in several different ways. The cost of materials to build a new home, the supplies, transportation, wages, and the land are all going up in price. We are also experiencing supply shortages. These costs will greatly increase the price of building a new home, and builders will be passing these costs on to the buyer. However, if you own a home, inflation allows you to build equity. If you’re an investor, it allows you to increase your rent along with inflation.
“Real estate is a great investment in these times of economic uncertainty.”
Interest rates are still low right now, and even with the rising prices of real estate, it’s the best place to put your money because it keeps up with inflation. If you’re planning on building or buying a new home, you will be impacted, but you can still lock in a great interest rate. In the long term, real estate is a great investment in these uncertain economic times.
If you’d like more information about inflation and how it is affecting your particular circumstances, please feel free to reach out to me by phone or email. I look forward to hearing from you.
