Inflation may be on the rise, and buying a home may be one of the best ways to help stabilize some of your potential Buyer's monthly expenses. That may be surprising news, given that U.S. inflation rates are the highest they've been since 1981 (8.6% in August 2022), according to the consumer price index (CPI). While our current inflation economy means higher prices across the board, homeownership is a great way to stabilize some of their monthly expenses. It's also important to recognize that while there's a current rise in interest rates, buying a home is often a better investment than renting. This is definitely the case in some specific markets, where rental rates are increasing at a remarkable speed. Locking in a set mortgage rate is one of the best ways to build long-term assets while also creating a stable monthly payment. So while the Federal Reserve continues to raise interest rates in hopes of easing inflation, here are some reasons you can share with your potential buyers that becoming a homeowner can help, and it's more achievable than they might think.
Stable Monthly Payments
While rent and inflation are guaranteed to fluctuate over time, a mortgage rate is a fixed monthly expense. When buying a home, their mortgage rate could be locked in for a set period of time. This means that their monthly payment for the duration of that loan will not change. On the other hand, renters are not protected from rapidly rising housing costs.
Increase in Property Value
We assume buying a home, it's often with the goal of making a long-term investment. While the rising mortgage rates and home prices mean that buying a home today costs more than it did a year ago, your potential buyers can still set themselves up for long-term investment success. Purchasing today means they'll be shielded from future rate increases while enjoying the potential gains in their home's value. Traditionally, buying a home is a wise long-term investment because tangible investments like real estate often increase over time.
Ready to Help Home Buyers Lock In A Great Interest Rate?
In an economy with rising inflation rates, homeownership is one of the best decisions you can give. Not only can you give them a stable monthly payment, but you also give them the added benefit of owning a home at a time when experts are forecasting that home prices will continue to rise.
Let us help you put a plan together to educate your prospective buyers to purchase now even while inflation is up. At PresGroup, we think about all the ways to drive qualified traffic through your doors. Call us today and let's chat through how PresGroup can help you grow and become more efficient in your sales and marketing processes.