Real Estate Matters - Inflation
Team members Lisa Barton and Tonya O'Quinn discuss the implications of inflation on the real estate market in this short video. One of the topics we get asked about the most as real estate professionals, especially now, is about the effects of inflation. What does inflation mean when it comes to buying and selling property?
The reality is that regardless of inflation, interest rates, and the uncertainties around those issues, people still need to buy a new home or sell their current one. It's our job as agents and professionals to guide you through the buying and selling process as smoothly as possible, in any economic environment.
Two potential outcomes of higher inflation on the real estate market include higher rental prices and less purchasing power. Higher rental prices might be seen as a positive for investors, but can make it harder for buyers to save money for a down payment to purchasing their own home. Interest rates, and subsequently, the cost to borrow money through mortgages, also tend to increase during inflationary times. With higher mortgage rates, buyers lose purchasing power, so their money no longer goes as far as it might have during a lower inflation period.
When considering buying or selling it’s important for you to evaluate your family's needs and wants. An experienced real estate agent can help you understand your personal and financial needs, as well as how these might be affected in light of the current market conditions. Give us a call if you'd like to learn more about your options for combatting the effects of inflation - whether buying or selling.
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If you are new to the area and have questions, please don’t hesitate to get in touch. We would be glad to help.
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