Impact of Inflation on the Housing Market - Echo Fine Properties Artboard 1? alert-icon? Artboard 1? ? ? delete-icon? edit-icon? email-icon hide-hover-icon? Artboard 1? login-icon-white Artboard 1? next-icon-left next-icon-right-left next-icon-left-ochre next-icon next-icon-right-grey next-icon-right-ochre plus-with-circle-iconP search-fw-icon? search-icon-ochre search-icon-white

Impact of Inflation on the Housing Market

This week I was interviewed by both the Sun Sentinel and CBS 12 on inflation in real estate and how it will be affecting the market. Watch the story here.

1. Inflation 
is now running at 6.8%.  That means if everything remains equal, expect a rise in home prices of 6.8% for 2022.  However, as I wrote last week, in State of the Real Estate Market for 2022, expect prices to run far north of 6.8%.

2. New construction communities are also starting to see builders insert clauses that they can raise prices if they get hit with price increases effecting the supply chain during the build.  If building, make sure you read your new construction contract.

3. If you are homesteaded, your home can only go up 3% a year.  While that is a bump in your payment, it’s a 3.8% savings versus the rate of inflation.  Read more about homestead and how to carry it to your next home.

4. The mortgage rates while they may go up as the Fed has indicated are still running far less than the rate of inflation.

5. Gas prices are still at $3.20 a gallon on average in Florida. While that is much higher than a year ago, it also means the economy is healthier as $1.99 was only when everything was closed, and no one was driving. We have been at $3.99 before and haven’t heard anyone wanting to be close to work because of it. If anything, we are seeing more of a migration to Stuart and Western Communities as there are more inexpensive opportunities. Also, with more electric cars on the horizon and the ability to work from home, a close distance to the office is not as vital as it used to be.

Posted in Open House Blog on January 8, 2022 at 8:05 am.


Celebrity Homes

from Beverley Hills
to Palm Beach

Never-before-seen-photos of your
favorite celebrity homes

View More Celebrity Homes

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *

Your name and email address are required. Your personal information is strictly confidential and will not be shared with any outside organizations.

Ask Questions

Your Soulmate in Real Estate™

Looking for a Perfect Community to live?

Take our step by step quiz to find a best matching community for you*.

* Patent Pending