Hi Prospects & Friends!
Inflation can effect real estate, in different ways. Some ways maybe;
- Higher interest rates on the mortgages, for the real estate bought, whether residential or commercial.
- The DOM "days on market" number climbing higher, causing the real estate to sit longer on the market.
- Remodeling costs costing more for renovating the real estate.
- Demand slowing down from the buyers, buying the real estate, because of the higher interest rates, the expensive renovation costs, and the DOM.
The examples listed above, are some inflation factors that can affect the real estate. Best thing to do when wanting to buy real estate when inflation is high, is do your due diligence by researching what maybe causing the property you're trying to buy to get affected, and then proceed with whether it's worth it to continue forward with your search for buying the real estate, or the sell of your home.
