Should You Still Buy a Home in the Fort Lauderdale Area with the Latest News About Inflation?
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 here in the Fort Lauderdale Area, 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 in the Fort Lauderdale Real Estate Market? If that question is top of mind for you, here's what you
need to know.
Homeownership Is Historically a Great Hedge Against
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,
mortgage allows you to maintain the biggest portion of housing expenses at the
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 maybe 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.
The best hedge against inflation is a fixed
housing cost. If you're ready to learn more and start your journey to
homeownership, contact the Tom Wolf Team
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