Inflation Shouldn’t Stop You from Buying a Home in 2022
Get it While the Getting is Good!
Though the news has been full of headline-grabbing stories about rising consumer costs and record breaking home prices, there is one thing you should know: Inflation! The cost to purchase a house will continue going up during times where inflationary concerns are high. But don't let this stop your dreams for buying that perfect property next year because Investopedia explains why we'll all be living with higher priced assets by then anyway
In an era when businesses want consumers' money more than ever before , it makes sense they would pass these increases onto us through our everyday lives - including what buys us shelter from.
Homeownership Offers Stability and Security
Home prices have been increasing for quite some time, and experts say they’re going to continue climbing throughout 2022. As a buyer how can you protect yourself from rising costs? The answer lies in housing- buy an affordable home with fixed rates that won't change based on market fluctuations!
James Royal, Senior Wealth Management Reporter at Bankrate, says:
“A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same.”
If you rent you won't be protected from inflationary prices. Don't forget the mortgage rates are really low so that helps with the monthly mortgage payment. While inflation decreases what your dollars can buy, low mortgage rates help counteract it by boosting your purchasing power so you can get more home for your money.
Ali Wolf, Chief Economist at Zonda, explains:
“If you have cash and are expecting inflation, you want to think through where you can put your money so it does not lose value. Housing is commonly looked at as a good inflation hedge, especially with interest rates so low.”
The best hedge against inflation is a fixed housing cost. That’s why you shouldn’t let it stop you from buying a home this year. Not sure where to start? Let’s connect so you have expert advice and help throughout every step of the homebuying process.
Lamont "Ben" Orr - The Orr Team eXp Realty 720-425-3365