Are you in real estate and wondering how inflation affects the real estate market? This blog discusses the historical look at inflation and real estate, impact of inflation on the real estate, how inflation affects homeowners and investors.
The first three months of 2022 saw an increase in the prices of goods and services. That was inflation in action. Inflation became an issue of concern in many areas of the economy, and real estate was not left behind. It made many real-estate investors get worried about their businesses and assets. Some ways in which inflation affects the real estate market include: higher mortgage rates, expensive construction rates, an increase in asset prices, and devaluation of long-term debts, to mention a few. Read along to learn more about how inflation affects real estate.
Inflation is a decrease in the value of money in terms of its purchasing power. Inflation …