Leave a Message

Thank you for your message. We will be in touch with you shortly.

Should You Still Buy a Home with the Latest News About Inflation?

Home Buying

Should You Still Buy a Home with the Latest News About Inflation?

When speaking to clients lately, I receive so many questions about today's real estate market. The main question is: should I buy a home with the rates being so HIGH right now? It's my professional opinion that if you found the house of your dreams, then the answer is YES. 

Your three options are:

1) buy now, and you can always refinance if the rates go down. 

2) If the rates go up, you're in a great position because you have a lower rate. 

3) Do nothing and miss out on your dream home.

I know, like me, you're likely feeling the impact in your day-to-day life as you watch the cost of goods and services climb. The pinch it's creating on your wallet, and the looming economic uncertainty may leave you wondering: "should I still buy a home right now?" If that question is top of mind, here's what you need to know.

The Federal Reserve is working hard to bring down Inflation. The latest data shows the inflation rate is still high, remaining around 8%. This news impacted the stock market and fueled the fire for conversations about a recession.

Homeownership Is Historically a Great Hedge Against Inflation

In an inflationary economy, prices rise across the board. Historically, homeownership is an excellent hedge against those rising costs because you can lock in what's likely your most significant monthly payment (your mortgage) for the duration of your loan. That helps stabilize some of your monthly expenses. James Royal, Senior Wealth Management Reporter at Bankrateexplains:

"A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. 

Sure, property taxes will rise, and other expenses may creep up, but your monthly housing payment remains the same." And with rents being as high as they are, stabilizing your monthly payments and protecting yourself from future rent hikes might be even more important. 

Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains what happened to rents in the latest inflation report: "Inflation refuses to budge. In September, consumer prices rose by 8.2%. Rents rose by 7.2%, the highest pace in 40 years."

When you rent, your monthly payment is determined by your lease, which typically renews annually. With inflation high, your landlord may be more likely to increase your payments to offset the impact of Inflation. That may be part of why a survey from realtor.com shows 72% of landlords said they plan to raise the rent on one or more of their properties in the next year.

If you're ready and able to do so, becoming a homeowner can provide lasting stability and a reliable shelter in times of economic uncertainty. Plus, you are the one in control of your finances, not your landlord.

The best hedge against Inflation is a fixed housing cost. If you're ready to learn more and start your journey to homeownership, let's get a plan in place to MAP YOUR MOVE!

Recent Blog Posts

Stay up to date on the latest real estate trends.

Home Buying

Year-End Financial Planning Motivates Buyers in the Luxury Market

Melinda Sarkis

How Holiday-Season Financial Strategies Drive Real Estate Decisions in the Luxury Market

Home Buying

Winter Real Estate Trends: Why the Luxury Market Remains Active During the Holidays

Discover why the holiday season offers unique opportunities for luxury property transactions—and how to leverage this time of year to make the most of your investment.

Holidays

Preparing Your Home for the Holidays: Staging Tips for a Luxury Touch

Melinda Sarkis

Create a timeless and inviting holiday ambiance that elevates your luxury home’s elegance and charm.

Seller Tips

Planning to Sell Your Home in Rancho Santa Fe or Boston in 2025? Start Prepping Now

Melinda Sarkis

Maximize your luxury home's value by starting early with strategic improvements and expert guidance.

Seller Tips

Why Now Is Not the Time to Take Your Luxury Home Off the Market

Melinda Sarkis

In a season where others are withdrawing, discover why maintaining your luxury home listing could be the strategic move that pays off.

Seller Tips

Is Your House Priced Too High? 4 Signs You Need to Adjust Your Strategy

Melinda Sarkis

Learn How Proper Pricing Impacts the Success of Your Home Sale in the Competitive Markets of San Diego and Boston.

Mortage Rates

Mortgage Rates Drop to Lowest Level in Over a Year and a Half: What It Means for Buyers

Melinda Sarkis

Historic Drop in Mortgage Rates Opens Doors for Savvy Homebuyers

Home Buying

What Mortgage Rate Should You Wait For?

Melinda Sarkis

Forecasting Mortgage Rate Trends in 2024

home ownership

The Next Financial Wave: How Shifting Wealth Dynamics are Transforming Luxury Real Estate

Melinda Sarkis

A New Chapter in Luxury Real Estate

Work With Melinda