If you read or watch the news, you’ve likely heard about record-breaking home prices, supply chain issues, and the rising cost of food and other consumer goods. While the thought of buying a home in Des Moines might seem crazy this year – all things considered, inflation should not stop you from becoming a homeowner. Here’s why.
Inflation & Buying a Home
During periods of inflation, the price of all things tends to increase. While home prices are not exempt from this, homeownership offers unparalleled stability and security.
Home prices have been increasing for quite a while, and many experts expect this trend to continue. However, owning real estate actually protects you from the rising cost of housing, food, and other goods and services. When you buy a home with a fixed-rate mortgage, you lock in a monthly mortgage payment. Property taxes and other expenses may increase over time, but the majority of your housing cost will be protected from inflation.
Housing is also a great way to make sure your cash doesn’t lose value during inflationary periods. Paired with low interest rates, experts view real estate as a great hedge against inflation.
