INFLATION

Defining the word inflation is nothing more than a persistent, substantial rise in the general level of prices related to an increase in the volume of money and resulting in the loss of value of currency. You're also likely feeling the impact in your day to day life as prices go up for gas, groceries along with other items. You are likely feeling the impact in your day to day life as you watch the cost of goods and services climb. These rising consumer cost can put a pinch in your wallet or pocketbook to make you have second thoughts on any major purchases that you may have had plans for. All and all inflation refuse to budge in many areas of the economy.

Inflation has cooled after June 2022, July and September spike in the interest rates and mortgage rates has risen over 6% as we speak in September 2022. Gas prices has dropped after the spike in the interest rates. The Feds warn even more that the economy will get worse. As consumer prices up 8.55 in July, however gasoline prices help offset the cost a bit. Electricity bills are expected to climb by 17% this winter from 15.8 August 2021 as per the National Energy Assistance Directors Association. Click here to learn more about the economic slow down /ECONOMIC-SLOWDOWN---32819---32836---Dr-Phillips-6-22903.html

Inflation causes most homeowners to postpone some are not planning to move and some are renovations. News/Current events Real Estate News reports 79% preferred to renovate than move to a new home. 59% of renovations are focused on energy efficient, 14% are looking for an addition to their home, 11% retrieved a higher loan.  Inflation is the enemy of long term interest rates.

Rising rates and inflation pose challenges during this process, prices rises across the board throughout the nation and world. Inflation should not stop you from buying a home. However with the spike in interest rates to cool demand and by discouraging borrowing and spending to slow down inflation. With a housing market correction /HOUSING-MARKET-CORRECTING---32819---32836---Dr-Phillips-6-22828.html this will bring the housing market out of sub standard conditions. As the rising inflation and mortgage rates bring the U.S. housing demand back from the 2021 frenzy, the inventory should grow double digits over and offer buyers a better than expected chances to purchase a home.

Truly pay close attention making financial decisions taking on too much debt. 

It's promising that the home purchase inventory will improve. Nearly 30% more homes as of July 22, 2022 are available for sale since this past January 2022. This is great news for homebuyers.

REAL ESTATE

Not only will buying a home today, it helps to begin to build equity. When other costs go up due to inflation, buying a home helps you keep your monthly housing costs for the long-term even while other life expenses continue to rise as this has been the case the past few pandemic years. Purchasing real estate and homeownership can shield you from inflation, it also offers stability and security. Rental prices and home prices are also on the rise. So as a buyer, how can you protect yourself from increasing cost? The answer is homeownership. Purchasing a home allows you to stabilize what typically your biggest monthly expense and a housing cost. Getting a fixed interest rate on your home, you secure your monthly payment for 15 or 30 years. Expect to see this housing market turning into a buyer's market

A fixed mortgage rate allows you to maintain the biggest portion of housing expenses at the same payment. Of course property taxes will rise and other expenses right behind that, however monthly housing payment remains the same and helps keep you within your budget. Many are wondering if the housing market will crash, click here to learn more /WILL-HOUSING-MARKET-CRASH---32819---32836---Dr-Phillips-6-23070.html

Renting, you do not have the same benefit and unprotected from rising housing cost.

HOME PRICE APPRECIATION

It is true that mortgage rates and home prices mean buying a house today easily cost more than it did a year ago. You still have an opportunity to get in the driver's seat to accomplish your long term goal to homeownership. It is time to invest your dollars that will grow and hold value. Home prices statistics show that prices will continue to rise from here on. As home values climb, your equity does too. Lock in today to homeownership. Click here to learn more about home prices appreciation and depreciation /HOME-PRICE-APPRECIATION-AND-DEPRECIATION---32819---32836---Dr-Phillips-6-23079.html

Equity can be a game changer if you are deciding to purchase a home, to find out how have in your current home you can use it into your next home purchase.

Serving Dr Phillips and Central Florida. Trust your local home advisor Kevin Strawter, stay connected and contact me at 850 496-6412 or email kevinstrawter@gmail.com to steer you in the right direction. Click here to know more about Kevin Strawter /ABOUT-KEVIN-STRAWTER-P-A---MRP--GRI--ABR-6-14330.html