The Real Estate Market and The Impact Of Inflation - Rents Are Going UP
How Will Inflation Effect The Housing Market?
We are smack dab in one of the strongest seller's markets we have ever experienced. Most of the country is experiencing this type of market. Another economic statistic that is changing daily is prices and the term that we are starting to hear a lot about is INFLATION.
"Inflation is the decline of purchasing power of a given currency over time. A quantitative estimate of the rate at which the decline in purchasing power occurs can be reflected in the increase of an average price level of a basket of selected goods and services in an economy over some period of time."
How will inflation effect the real estate market? Historically, housing prices tend to rise with inflation. As we have introduced historically low interest rates and money in the form of congressional bills, tax rebates, stimulus checks, money to pay rents due....that has more money moving round and that will and is already increasing the price of nearly everything, including housing. Sellers love selling for more money but the "economy" is this huge and almost uncomprendable cloud of domino effects and one of the negative impacts that inflation and rising home prices will have is that it will drive the price of rents UP. This can end up effecting and will end up effecting those on fixed incomes (single parent homes, seniors, and low income earners). Not only will inflation cause the price of rents to go up but it will also effect goods and services in the mix. What we end up with is no more stimulus releases, the same income, higher rent, and higher goods and services costs. INCLUDING FOOD.
Want to protect yourself from rising rent? Buy now....I MEAN LIKE NOW before prices go up more. We know of some builders still building in the $200's and one is giving money towards closing costs. This way you could take advantage of the inflation and build equity along with the rise. Would you like more information?