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How Does Inflation Affect Real Estate?

How you might actually benefit from inflation if you own a home.

It seems like I can’t turn the news on without hearing about the rapid rise in inflation. We’re all feeling it at the gas pumps and grocery stores, but how does inflation impact real estate?

The National Association of Realtors, or NAR, predicts that home prices will continue to rise throughout 2022. If you purchase a home today and prices keep going up, your payment will stay the same. Your home value might increase, but you lock in your monthly cost when you buy the property. This is how real estate hedges against inflation.

The chief economist at NAR, Lawrence Yun, did some research that shows homeownership has been the best hedge against inflation over the last 50 years. Think about it: you can effectively freeze the price when you buy a home and take advantage of inflation to create wealth.

Housing is one of the most important things for you and your family. Locking in a home today and combating inflation is a great deal. If you’re interested in taking advantage of this inflationary period, call or email us. We’d love to have a conversation with you.

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