It feels like everywhere we look, prices are on the rise, from food to gas, we are paying more! Rent and housing prices are not immune from this phenomenon. But there are huge benefits to home-owning during a time when all other prices are uncertain. Hi! I’m Tanja Odzak, Our East Bay Home brokered by eXp Realty. Let’s talk about the benefits of homeownership during a time when we see such high inflation.
Inflation gives homeowners a buffer zone when inflation is on the rise. As inflation goes up, home price appreciation rises faster according to the National Association of Realtors. Investopedia says, “Real estate is one of the time-honored inflation hedges. It’s a tangible asset and those tend to hold their value when inflation reigns, unlike paper assets. More specifically, as prices rise so do property values.” Homes are consistently increasing in value right now. Forbes put it simply when they said, “Homeowners are shielded from mounting rental prices because their cost is fixed, regardless of what’s happening in the market. They’re locking in that payment at today’s cost.”
Let’s take a look at foreclosures for a moment since we always get asked to compare to 2008. This last year we have had 422,360 fewer foreclosures over the last 2 years according to NY Fed. We had over 9 million in 2008, so things are looking very different. We are also having the slowest refinance rate since March of 2020. With all these questions you may have about the market, it’s going to be really important that you partner with the best agent before buying or selling your home.
Ask me about my tiered home selling plans where you get to pick which real estate services you want and the fee you pay offering you simplified and transparent choices!
I’m a Top Producing Realtor® in the OAKLAND / BERKELEY / EAST BAY AREA. I’ve been in the San Francisco East Bay Area since I came up to do my undergrad at UC Berkeley (a long time ago!), with a short stint at UC Davis while getting my Master’s. I take my duties as a Realtor® and Fiduciary very seriously, I enjoy educating my sellers and buyers along the way. Putting People, Before Profit.
Why not check out one of my no-obligation, online, On-Demand, virtual Real Estate Seminars?