If you’ve been to the grocery store lately, you’re no doubt aware of rising inflation. The price of pretty much everything is up, from food to gas to homes.
“The inflation rate is the highest it’s been in more than 40 years, and you’re likely feeling the pinch,” says Catherine Nimmo, Sales Associate at ERA Justin Realty, “You may be re-evaluating big purchases. But if you’re a renter considering buying a home, you may not want to wait.”
Owning a home can actually help you fight the rising costs that come with inflation by stabilizing one of your biggest monthly expenses: housing.
“If you’re a renter, your landlord can raise your rent in order to cover their own rising costs,” says Jennifer Darby Metzger, Broker/Owner of ERA Justin Realty, “If you buy a house, your mortgage payment will stay the same every month and every year. Then, you get your principal money back and more when you sell. You never get your rent back.”
While it’s true that housing prices are currently high, mortgage rates are still historically low. “When you have a fixed rate mortgage on your home, it’s locked for 15 to 30 years,” adds Nimmo. “That’s certainly not the case for renters who often have to move to save money. And moving isn’t cheap either.”
Even if your taxes and utility bills go up with rising inflation, knowing your monthly mortgage payment will stay the same can help keep your budget in check.
Plus, your home’s worth will appreciate as time goes on. “During inflationary times, you want to be invested in an asset like a home which will outperform inflation in the long run, and typically holds or grows in value,” says Darby Metzger. According to the National Association of Realtors, home prices have outperformed the average inflation rate in most decades going back to the 1970s.
If you’ve been thinking of buying a home this year, it makes sense to act soon, even with inflation rising. Home prices will continue to go up. Once you own, your home’s appreciation will grow your equity and net worth. Ready to get started? Catherine Nimmo or any of the agents at ERA Justin Realty can help you. Call us at 201-939-7500.