Mortgage rates will rise to 3.6%, bringing price growth back down to earth.
Prediction #2:
New listings will hit a 10-year high, which will hardly make a dent in the ongoing supply shortage.
Prediction #3:
Rents will increase by 7%.
A Good Hedge
Food, gas, computer chips - prices are going up almost everywhere. Even in the housing sector: home prices are up almost 20% y/y in August 2021.
Even though housing prices are going up, real estate may be a good hedge against inflation. When you have a monthly mortgage, you're locked into a fixed payment and are less susceptible to rising prices.
"Homes are expensive now...but for most people the comparison that is most important is how that cost of home ownership is going to compare to the cost of renting," said an economist.
The cost of goods across industries is rising, leading to broader concerns about inflation and whether people will struggle to purchase the items they could afford in the past. But there are financial moves consumers can make to hedge against inflation. One of those strategies is to invest in real estate, especially when mortgage rates are low, as they are now. Read More
How To Think Strategically as a Buyer in Today’s Market
The game of chess can provide incredible lessons to apply to all aspects of life, including the homebuying process. Chess requires you to plan and think about your strategy from the very beginning of the game.
The homebuying process, like chess, requires strategy and planning. Here are a few things to keep in mind to ensure your plan is as strong as possible when you begin your home search.
Pre-Approval: the Best Opening Play To Make as a Homebuyer.Read More
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