Inflation is on the rise, but that doesn’t mean you should stop buying or selling a home. In fact, there are several reasons why now might be a great time to buy or sell!
Watch this video to learn more about what’s happening with inflation and how it could impact your real estate transaction. You’ll also hear some tips on how to stay ahead of the curve during these changing times.
While it’s true that inflation can eat away at the value of your home, this doesn’t mean that you shouldn’t buy or sell during times of rising prices. In fact, there are a number of reasons why buying or selling during inflation can be a smart move. For starters, inflation often leads to higher incomes and lower interest rates, both of which can help to offset the effects of rising prices. Additionally, inflation can actually create opportunities for bargain-hunters. As prices rise, sellers who are in a rush to unload their property may be willing to accept offers that are below market value. So, if you’re considering buying or selling a home, don’t let inflation scare you off – it may not be as bad as you think.
What is Inflation?
Inflation is a general increase in the prices of goods and services in an economy. In other words, it takes more money to buy the same amount of goods or services.
In other words, inflation reflects a decrease in the purchasing power of a unit of currency. In the United States, the most common measure of inflation is the Consumer Price Index (CPI), which is released monthly by the Bureau of Labor Statistics. Many factors can contribute to inflation, but it is generally caused by excess demand in the economy.
How does inflation impact the real estate market?
The impact of inflation on buying or selling a home can be significant. For example, let’s say you purchase a home for $100,000. In a year with 3% inflation, the price of your home will increase by $3,000 to $103,000. In order to sell your home for the same price you paid, you’ll need to find a buyer who is willing to pay 3% more than you paid, which may be difficult to find. On the other hand, if you’re selling a home during a period of low inflation, you may be able to sell your home for more than you paid. In general, inflation has a greater impact on buyers than sellers. This is because buyers are typically making a one-time purchase while sellers have had the opportunity to “ride out” periods of high inflation by living in their homes and making monthly mortgage payments. As a result, if you’re thinking of buying or selling a home during inflation, it’s important to consult with a real estate agent to get an accurate estimate of your home’s value.