Rising Inflation Means Homebuyers
Will Be Looking for Homes
that are $40,000 Cheaper
Inflation accelerated to 8.5% in March, the strongest pace in 40 years. With inflation running this high, the average consumer is spending $500 more compared to one year ago, or $6,132 annually. The higher spending on other consumer items means that the consumer will have less income to spend on a mortgage payment and will be looking for a home that is about $40,000 cheaper.
With rising inflation, higher mortgage rates, and tight supply, housing demand is expected to decrease in 2022, to 10% according to the National Association of Realtors' Chief Economist, Lawrence Yun. However, prices are expected to still increase about 5% because of tight supply conditions.
Are you considering selling and/or purchasing a home in Bucks, Montgomery, Delaware, Mercer, Burlington or Philadelphia? More than ever, you need expert, professional representation. Before you consider making a move, call The John McClintock Team at 267‑759‑9518 for no obligation recommendations on dealing with bids, realistic prices and precise timing to suit your needs.