Un Realtor stands on the doorstep as Giovani and Nicole Quiroz from Brooklyn, New York visit an open house in West Hempstead, New York.Raychel Brightman | Newsday LLC | News Day | Images
Higher prices are almost everywhere.
Americans pay more these days for things like food and gas, thanks to the rise " in inflation .
Of course, this rise inflation will also have an impact on the cost of buying a new home.
"With inflation rising so aggressively and the fact that wages and weekly income of people are not growing at the same rate, we end up with less discretionary money to spend each month, "said George Ratiu, director of economic research at Realtor.com.
At the same time, house prices have also increased.The consumer price index, which measures the cost of goods and services, shows that housing rose 0.5% in October. It takes into account the rent and owner's equivalent rent, what the owners would pay to rent their house.
Separately, the house prices were up 19.8% year-over-year in August, according to indices S&P CoreLogic Case-Shiller.
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So what is What does all this mean for home buyers?
On the one hand, you may need to cut your budget, Ratiu said.
Not only will you have less money. money to spend each month, as you pay higher prices elsewhere, mortgage rates also go up. Median-priced homebuyers are spending $ 160 more on monthly mortgage payments than a year ago, according to a analysis "from Realtor.com . Ratiu expects these rates to continue to rise.
"Generally, as we see inflation rise, we will see mortgage rates rise," he said. he declared.
A hedge against inflation
Real estate has always been considered a copenness against inflation.
Home values traditionally at least keep pace with inflation, and when you have a mortgage you lock in a fixed monthly payment for the life of the loan.
"Houses are expensive now ... but for most people the comparison what is most important is how this cost of home ownership is going to compare to the rental cost "said Jeff Tucker, Zillow Senior Economist.
Rent is more unpredictable than a mortgage and is more likely than unlikely to increase, he said. he declares. He predicts that wider inflation will have an impact on rental prices.
"If wages rise or the cost of building materials and appliances, light bulbs and electricity. paint increases, all of this to some extent will affect the cost of maintaining and building rental housing, "Tucker said.
Supply and demand also have an impact on rental prices, which are already grew 10.2% nationwide in September year-over-year, according to CoreLogic.
Tips for Homebuyers Roberto Westbrook | tetra images | Images
That 's worth buying a home now depends on your situation, Ratiu said.
For most Le people, owning a home is having a shelter, although historically it has been a good investment. , there have also been times when home values have gone down, he pointed out.
Therefore, it is best to think about your budget and your schedule. 'Staying there for at least three to five years, that makes sense, especially given favorable interest rates, Ratiu said.
True, buyers have facedDue to stiff competition and bidding wars since there are a limited number of homes on the market. Still, Realtor.com predicts an easier time by next spring.
A survey of real estate agents This drop of 1,300 US homeowners found that 26% planned to sell their home within the next 12 months. double the results of its March 2021 survey.
"I think 2022 has the promise of providing less competition, a lot more housing to choose from and, therefore, a lot more affordable prices "Ratiu said.
That said, there is some good news for those on the market right now. Although there are fewer listings to choose from to choose from. 'By early January, there are even fewer competing buyers, Tucker said.
"Historically, you're likely to getget some of the best deals of the year, "he said.
Don't be fooled by a home that might not be right for you, as it may be available at a good price.
"The home is where your family will live every day " said Tucker.
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