Should you still buy a home with inflation and interest rates shooting up?
Is it a good time to buy, or should you sit on the sidelines for now? To answer that, let’s discuss inflation, interest rates, and housing affordability. The National Association of Realtors has indicated that home prices will increase again this year due to rising inflation. Inflation is the highest it’s been in 30 years, and affordability is suffering, which is cause for concern.
However, Lawrence Yun, Chief Economist for the NAR, recently shared a graph that shows how buying real estate is the best hedge against inflation (see the graph at 1:10 in the video above). We can see that housing prices have escalated quicker than inflation for the past 50 years. If you’re worried about inflation and climbing interest rates, now is the best time to buy to protect yourself against inflation before homes become less affordable.
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