The increase in inflation and home prices are making the market hot but also can cause concern in safeguarding your assets. Today inflation is close to a 40-year high which has caused a spike in the cost of everything. The housing market is currently a strong seller’s market, however many are concerned with the imbalance in low inventory and high demand. Experts in the field assure us there is no need for concern. Here are reasons why selling or buying a home right now can safeguard you from inflation.
The housing market can protect you from inflation
Real estate is a great way to invest your financial resources. Real estate remains a stable area for investment and profit realization because a home’s value does not increase in relation to currency; it increases based on demand. Remember inflation is up way more than mortgage interest rates. If you are a seller, then there is no better time to sell with such a high buyer demand.
Buying a home: by the numbers
Right now, Americans are seeing an annualized inflation rate of almost 15%. The current mortgage rate is around 5% which makes this a perfect time for homebuyers to purchase. Paying down your mortgage at 5% is better and your equity will continue to grow.
Both buyers and sellers can make tremendous gains
This hot market is overwhelming for both buyers and sellers but it is a great market to be in. According to the National Association of Realtors, properties are selling with just 17 days on the market over the asking price. Currently, there are more buyers than listings, so sellers have a big advantage. Houses are selling in bidding wars allowing for greater profits and quick sales. If you are a buyer, this is still good news for you because this demand is predicted to continue for the foreseeable future.
Now is the time for both buyers and sellers, so if you are considering getting into the market, now is the time. Do not try to navigate the market without a Realtor. A Realtor can help you succeed in this fast pace market whether you are selling a home or buying a home.