Is Inflation Affecting the Prices of Homes?

Uncategorized
July 11, 2023

Learn More About How Inflation is Affecting the Prices of Homes Near You

If you’re in the market for a new house, you may have noticed that home prices have risen exponentially over the past year! But what exactly contributes to this surge? Is inflation affecting the prices of homes? Unfortunately, yes- inflation is a large part of the issue!

While this year’s inflation rate is lower than last year’s 8.58% rate, it is still higher than the long-term average of 3.28%. That means while inflation is comparatively low, it still affects many economic areas in the country, including home prices! In fact, according to CoreLogic’s latest report, home prices rose year over year by 2% in April 2023 compared to 3.1% in March 2023! Even when home prices have recently fallen in June, the lack of housing inventory can still put considerable pressure on prices.

As a homebuyer, it can be disheartening to read the effects of inflation and inventory on home prices. However, there are some reasons to be hopeful for the housing market’s future! For example, the U.S. inflation rate seems to be going down after a staggering halt in May, with a further potential to decrease in the upcoming months. Additionally, according to the NAR’s Chief Economist Lawrence Yun, the average standard of living is finally outgrowing consumer price inflation. That means the housing market could reach a reasonable price range for many homebuyers nationwide! However, it’s worth noting that affordability trends will depend on factors like supply/demand and the mortgage rates that will occur in the market. Yet, there’s still reason to believe that the best time to buy a house is approaching sooner than expected!

Are you considering buying a house but are worried about inflation? Keep reading to learn more about applying for a home during the rise of inflation.

What Should I Do If I Want to Buy a Home During Inflation?

Take a look at some strategies you can use if you’re contemplating buying a house during inflation:

Investigate the Different Housing Markets in Your City for Affordable Homes
Stay Alert for When Sellers Lower Their Prices
Reexamine Your Budget and Know What You Can Afford
Extend Your Home Search for Houses in Less Expensive Areas
Increase Your Chances of Qualifying for Low Mortgage Rates By Boosting Your Credit Score
Research the Different Mortgage Types Available to Help You Save Money

Keep in mind that these are just some examples of what you can do to buy a home during these uncertain times. However, if you consider some of these tips before purchasing a home, you could decide if it’s worth getting a house now or waiting until later. Contact a Realtor in Encinitas (or wherever you’re located) if you want more advice on buying a home during inflation.

Can a Realtor Help Me Find a Home and Navigate Inflation?

Unfortunately, buying a home during inflation might be difficult if you go at it alone. However, if you hire a Realtor, they can help you steer in the right direction and manage the challenging parts of the buying process! Just make sure you find a knowledgeable and experienced Realtor to assist you in buying a home today.

Contact Realtor Linda Moore for help finding the right home for you during inflation.