home values
While 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 added fuel to the fire for conversations about a recession.
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 for you, here’s what you need to know.
In an inflationary economy, prices rise across the board. Historically, homeownership is a great hedge against those rising costs because you can lock in what’s likely your largest 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 Bankrate, explains:
“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, the ability to stabilize your monthly payments and protect yourself from future rent hikes may 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 on an annual basis. With inflation high, your landlord may be more likely to increase your payments to offset the impact of inflation. That may be part of the reason 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.
Becoming a homeowner, if you’re ready and able to do so, can provide lasting stability and a reliable shelter in times of economic uncertainty. Historically the best hedge against inflation is a fixed housing cost. If you’ve been shopping for a home this topsy-turvy housing market can help burned-out buyers reset. While rising mortgage rates add a new layer of stress to buyers, fewer bidding wars can counterbalance affordability.
Hire us to navigate the complexities of the real estate market. We are here to answer questions that you have. Let's talk.
Stay up to date on the latest real estate trends.
critical choices when selling a home
It Might Be Time to Rethink Where You Live
title insurance
Why Homebuyers in Ventura County & Northwest Los Angeles Should Care
2025 Housing Market
Why That’s Great News for Buyers and Sellers
2025 Housing Market
Avoid These Costly Errors and Maximize Your Home’s Value with Expert Guidance
senior housing retirement homes
Discover How Your Home’s Equity Can Help You Enjoy a More Secure and Fulfilling Retirement in Westlake Village, Thousand Oaks, and Surrounding Communities
selling and downsizing
How new home communities are making homeownership more affordable with smaller, smarter spaces.
westlake village real estate
Making Smart Real Estate Moves in Westlake Village, Thousand Oaks, and Agoura Hills
2025 Housing Market
With High Demand and Low Inventory, Your Home Could Be Exactly What Buyers Need
Homeownership
Explore the Emotional and Personal Rewards of Owning a Home
You’ve got questions and we can’t wait to answer them.