Allow me to answer the 5 most frequent questions I am asked:
What is up with inflation these days?
As of March, inflation rates in the US reach the highest levels observed in the last three decades.
Consumer prices rose 8.4% last month from a year ago. That is the sharpest annual rate increase since early 1982 and it reflects the elevated energy costs during Russia’s invasion of Ukraine.
While the cost of living continues to rise, salaries remain the same, which means that individuals have less money to spend on necessities and save for the future.
Has the price of homes gone up or down?
During the epidemic, mortgages were more affordable, resulting in an increase in housing prices that has spiraled out of control.
The January sales report shows the average price of a home sold in San Antonio increased 17% to $351,226, the median price appreciated by 18% to $304,700 and the average home stayed on the market for 35 days, 12 days less than January of 2021.
What is the effect of inflation on homeownership?
Inflation and the property market are linked. The simplest way to explain this is that inflation affects properties’ supply and demand. When there is increased demand, it drives up house prices and lead to potential buyers being priced out of buying a property due to a shortage of properties on the market. The opposite if there is less demand and more sellers, this will reduce property prices.
The rise in property prices has made it difficult for first-time buyers to find a home watching house prices rocket far faster than they can save for a down payment.
Existing homeowners feel they might be stuck in a situation where even if they can sell for more, the house they want to buy has also significantly increased. In turn, sellers are also affected: they may seem richer on paper but cannot realize any gains unless they sell or cash in equity. They cannot trade up either because they are priced out, which in turns, brings less home for sale to the market.
What will be the impact of inflation on real estate purchases and sales?
Economic indicators, including the rising costs of living, inflation and increasing mortgage rates mean that buyers and sellers will be paying increased attention to the affordability of their new home, both the purchase price, home loan repayments and running costs.
Buyer demand is still extremely high across the US; however, we can expect buyer demand to normalize throughout the course of the year, resulting in a slowing of home price increases.
When should you purchase or sell?
Those looking to sell are in a better position right now. Buyer demand is extremely high, and homeowners in San Antonio thinking of moving will be able to realize sizeable gains in the value of their home registered over the last few years. Whether or not now is the greatest moment to purchase depends on a person’s specific circumstances. However, I would caution you against waiting indefinitely. Please don’t give up on your property dreams because it sounds complicated.
We have the Knowledge and Experience to help you analyze your options and what would be best specifically for you. Let’s talk, call us anytime (210) 418-0067.