Here’s how increasing inflation will impact our housing market.
You may have heard inflation is rising, but what does that mean for you? Today I’m sitting down with Ryan Paquin from First Home Mortgage to discuss how inflation impacts our real estate market.
Inflation is a hot topic right now. The pandemic spurred a lot of government spending, and it continues to create supply chain issues across the world. This has caused the cost of goods to increase, which leads to inflation.
This impacts the housing market in a few ways. First, anything you own will increase in value. That seems great, right? Unfortunately, it’s not all good news. As inflation increases, interest rates are likely to go up, meaning that fewer people can afford our newer, increased prices.
In the long run, this means the government will have to do a balancing act between keeping rates low and staving off inflation, but for now, rates remain at historic lows. This means buyers can still get a great deal on appreciating homes. If you have equity, it’s also a great time to tap into it.
It seems we’re in a perfect storm right now, but it’s hard to say how long it will last. You can take advantage of it by reaching Ryan at 443-377-1589 or ThePaquinTeam@firsthome.com. As always, if you have any questions, do not hesitate to call or email me. I am always willing to help.