07/06/2022
Have you gotten second thoughts about homeownership? Read this article for some wonderful insight on why NOW is the time to buy!!
Give me a call TODAY with any questions you have about the market!
๐๐จ๐ฆ๐๐จ๐ฐ๐ง๐๐ซ๐ฌ๐ก๐ข๐ฉ ๐๐ฌ ๐ ๐๐ซ๐๐๐ญ ๐๐๐๐ ๐ ๐๐ ๐๐ข๐ง๐ฌ๐ญ ๐ญ๐ก๐ ๐๐ฆ๐ฉ๐๐๐ญ ๐จ๐ ๐๐ข๐ฌ๐ข๐ง๐ ๐๐ง๐๐ฅ๐๐ญ๐ข๐จ๐ง | ๐๐ฒ๐๐๐
If youโre following along with the news today, youโve heard about rising inflation. Today, inflation is at a 40-year high๐. According to the National Association of Home Builders (NAHB):
โ๐ฒ๐๐๐๐๐๐๐ ๐๐๐๐๐๐ ๐๐๐๐๐๐๐๐๐๐๐ ๐๐๐๐๐ ๐๐ ๐ผ๐๐ข ๐๐ ๐๐๐๐๐๐๐, ๐๐๐๐๐๐ข ๐๐๐ ๐๐๐๐ ๐๐๐๐๐๐ ๐๐๐๐๐๐๐๐๐ ๐๐ ๐๐๐๐๐ ๐๐ ๐๐๐ ๐๐๐๐๐๐๐ ๐๐๐๐ ๐๐ ๐๐๐๐๐๐๐. ๐๐๐๐ ๐๐๐๐๐๐ ๐๐๐ ๐๐๐๐๐ ๐๐๐๐๐๐๐๐ ๐๐๐๐๐ ๐๐๐ ๐๐๐๐๐๐๐๐๐ ๐๐๐๐๐ ๐๐ ๐พ% ๐๐๐๐ ๐๐๐ ๐ ๐๐ ๐๐๐ ๐๐๐๐๐๐๐ ๐ข๐๐๐-๐๐๐๐-๐ข๐๐๐ ๐๐๐๐ ๐๐๐๐๐ ๐ณ๐๐๐๐๐๐๐ ๐ท๐ฟ๐พ๐ท.โ
With inflation rising, youโre likely feeling it impact your day-to-day life as prices go up for gas, groceries, and more. ๐๐
These climbing consumer costs can put a pinch on your wallet and make you re-evaluate any big purchases you have planned to ensure theyโre still worthwhile.
If youโve been thinking about purchasing a home this year, youโre probably wondering if you should continue down that path or if it makes more sense to wait.
While the answer depends on your situation, hereโs how homeownership can help you combat the rising costs that come with inflation.
๐๐จ๐ฆ๐๐จ๐ฐ๐ง๐๐ซ๐ฌ๐ก๐ข๐ฉ ๐๐๐ฅ๐ฉ๐ฌ ๐๐จ๐ฎ ๐๐ญ๐๐๐ข๐ฅ๐ข๐ณ๐ ๐๐ง๐ ๐จ๐ ๐๐จ๐ฎ๐ซ ๐๐ข๐ ๐ ๐๐ฌ๐ญ ๐๐จ๐ง๐ญ๐ก๐ฅ๐ฒ ๐๐ฑ๐ฉ๐๐ง๐ฌ๐๐ฌ
Investopedia explains that during a period of high inflation, prices rise across the board. Thatโs true for things like food, entertainment, and other goods and services, even housing. Both rental prices and home prices are on the rise.
So, as a buyer, how can you protect yourself from increasing costs?
The answer lies in ๐ก๐จ๐ฆ๐๐จ๐ฐ๐ง๐๐ซ๐ฌ๐ก๐ข๐ฉ.๐
Buying a home allows you to stabilize whatโs typically your biggest monthly expense: your housing cost.
When you have a fixed-rate mortgage on your home, you lock in your monthly payment for the duration of your loan, often 15 to 30 years.
James Royal, Senior Wealth Management Reporter at Bankrate, says:
โ๐ฐ ๐๐๐ก๐๐-๐๐๐๐ ๐๐๐๐๐๐๐๐ ๐๐๐๐๐ ๐ ๐ข๐๐ ๐๐ ๐๐๐๐๐๐๐๐ ๐๐๐ ๐๐๐๐๐๐๐ ๐๐๐๐๐๐๐ ๐๐ ๐๐๐๐๐๐๐ ๐๐ก๐๐๐๐๐๐ ๐๐ ๐๐๐ ๐๐๐๐ ๐๐๐ข๐๐๐๐. ๐๐๐๐, ๐๐๐๐๐๐๐๐ข ๐๐๐ก๐๐ ๐ ๐๐๐ ๐๐๐๐ ๐๐๐ ๐๐๐๐๐ ๐๐ก๐๐๐๐๐๐ ๐๐๐ข ๐๐๐๐๐ ๐๐, ๐๐๐ ๐ข๐๐๐ ๐๐๐๐๐๐๐ข ๐๐๐๐๐๐๐ ๐๐๐ข๐๐๐๐ ๐๐๐๐๐๐๐ ๐๐๐ ๐๐๐๐. ๐๐๐๐โ๐ ๐๐๐๐๐๐๐๐๐ข ๐๐๐ ๐๐๐ ๐๐๐๐ ๐๐ ๐ข๐๐โ๐๐ ๐๐๐๐๐๐๐.โ
So even if other prices increase, your housing payment will be a reliable amount that can help keep your budget in check. ๐ฐ๐ฐ
If you rent, you donโt have that same benefit, and you wonโt be protected from rising housing costs.
๐๐ง๐ฏ๐๐ฌ๐ญ๐ข๐ง๐ ๐ข๐ง ๐๐ง ๐๐ฌ๐ฌ๐๐ญ ๐๐ก๐๐ญ ๐๐ข๐ฌ๐ญ๐จ๐ซ๐ข๐๐๐ฅ๐ฅ๐ฒ ๐๐ฎ๐ญ๐ฉ๐๐ซ๐๐จ๐ซ๐ฆ๐ฌ ๐๐ง๐๐ฅ๐๐ญ๐ข๐จ๐ง
While itโs true rising home prices and higher mortgage rates mean that buying a house today costs more than it did even a few months ago, you still have an opportunity to set yourself up for a long-term win. Thatโs because, in inflationary times, you want to be invested in an asset that outperforms inflation and typically holds or grows in value.
So, what does that mean for you?
Today, experts forecast home prices will only go up from here thanks to the ongoing imbalance of supply and demand. Once you buy a house, any home price appreciation that does occur will grow your equity and your net worth.
And since homes are typically assets that grow in value, you have peace of mind that history shows your investment is a strong one.
That means, if youโre ready and able, it makes sense to buy today before prices rise further.๐ช๐ช
๐๐จ๐ญ๐ญ๐จ๐ฆ ๐๐ข๐ง๐
If youโve been thinking about buying a home this year, it makes sense to act soon, even with inflation rising. That way you can stabilize your monthly housing cost and invest in an asset that historically outperforms inflation.
If youโre ready to get started, letโs connect so you have expert advice on your specific situation when youโre ready to buy a home.๐ค
