Interestingly enough, home values and new construction rise with inflation. And, with the severe shortage of inventory and materials  amidst the high demand for homes, properties that are priced strategically are selling above asking price. Quite simply, it’s a matter of supply and demand. This is still very much a Sellers’ market and this spring will be like no other with the continued shortage of homes and increasing values. 

Historically, real estate is a hedge against inflation. However, it is important to understand how inflation impacts your plan to buy a home. Salaries don’t rise at the same rate as inflation, you have less discretionary money to spend. Couple that with everyday expenses for essentials: food, shopping, commuting to work and utilities,  which tend to rise with inflation. It’s important and necessary to revisit your budget for what you will be able to allocate each month for your monthly mortgage payment and expenses.

As a homeowner in today’s market, weighing options of selling during inflation and a sellers market  may lead you to additional savings if carrying a home is actually costing more to heat, cool, overall maintenance, and property taxes. Current market conditions make it a sellers market that might be ideal for you, benefiting from downsizing and or relocating options if on the fence about selling and seriously considering. 

Whether you are thinking of buying or selling, it’s more important now than ever to work with a local realtor who can advise and implement strategies customizing your real estate needs as you enter today’s housing market facilitating a seamless transaction with the best outcome.