Are you worried about whether inflation is affecting your property value? In this video, I’m going to give you some insight into inflation and how that affects the real estate market. We’ll look at the numbers and trends so you know what to expect in the future of the market.
Is It A Good Time To Buy?
When it comes to inflation, many people want to know how it affects the real estate market and property value. Whether you already own or are thinking of buying a home, is now a good time? The answer to this depends on a few factors.
If you plan on owning the property for a while, then yes; it’s a great time to buy. Over the years, real estate always increases in value, particularly in an inflationary period. As this inflation continues, the value of your real estate will continue to increase. Even if it doesn’t, real estate tends to do very well even in a recession based on historical trends.
Cashing Out
Another question people often have is if they should hold on to their current home or sell and cash out. This largely depends on what you’re doing next. For example, are you planning to move up to a larger house, or are you selling to move down to a lower-priced property?
My recommendation is to always do what fits you in your personal life or your family life. If you need to move for a job change, you should move. However, what makes sense for most people right now is to sell a larger home and move down to a smaller home.
By taking advantage of the current market, you can sell high and move into a lower-priced property. Doing so allows you to save some of that cash.
A Market Correction
While inflation doesn’t always lead to a housing crash, it’s probably going to lead to some type of market correction. You’ve probably seen that already. If you pay attention to the stock market or the bond market, there is a correction going on right now—though we haven’t seen that yet in real estate.
Historically, there are often corrections to one market but not another in a recession. For example, it’s entirely possible that there could be a stock market crash but not a real estate crash. In fact, we’ve seen increases in property values. Right now, most people really feel the effects of inflation on the cost of everything else.
Rising Costs
Keep in mind that even though the value of your home has gone up, there are other things to consider. If you’re shopping for a home right now, things such as property insurance, electricity bills, maintenance, and labor for repairs are more expensive. Additionally, it’s currently common to see condo fees increase in just about every condo.
These things are all just naturally happening due to inflation. There are small adjustments throughout the real estate market that you’re seeing, simply because wages have gone up, utilities have gone up, and more. That’s going to increase your monthly housing payment.
The Future Of The Market
Of course, we can never predict the future. Things may change and, in a time like this, it could change very rapidly without a lot of foresight. There are not as many answers as there are questions out there, but that’s what we’re here for. We will continue to do weekly and monthly updates to try to stay as ahead of this these adjustments as possible
Inflation has many good and bad effects on homebuyers, homeowners, and sellers. We’ll do our best to keep you posted as things may or may not change in the market, so make sure to subscribe to our channel so you never miss a new episode. Stay tuned to see what I feature next!