National Market Update
It feels like everywhere we look, prices are on the rise, from food to gas, we are paying more! Rent and housing prices are not immune from this phenomenon. But there are huge benefits to homeowning during a time when all other prices are uncertain. I’m Asha Bean your local Realtor at CENTURY 21 Bell Real Estate, let’s talk about the benefits of homeownership during a time when we see such high inflation. Inflation gives homeowners a buffer zone when inflation is on the rise. As inflation goes up, home price appreciation rises faster according to NAR (Insert Graph #4) Investopedia says, “Real estate is one of the time-honored inflation hedges. It’s a tangible asset and those tend to hold their value when inflation reigns, unlike paper assets. More specifically, as prices rise so do property values.” Homes are consistently increasing in value right now. Forbes put it simply when they said, “Homeowners are shielded from mounting rental prices because their cost is fixed, regardless of what’s happening in the market. They’re locking in that payment at today’s cost.” Let’s take a look at foreclosures for a moment since we always get asked to compare to 2008. This last year we have had 422,360 fewer foreclosures over the last 2 years according to NY Fed. We had over 9 million in 2008, so things are looking very different. We are also having the slowest refinance rate since March of 2020. With all these questions you may have about the market, it’s going to be really important that you partner with the best agent before buying or selling your home.
As always, Asha Bean, Homes with Asha @CENTURY 21 Bell Real Estate “Not Your Average Realtor”
