Hello everybody my name is John Malozsak and welcome back to Suburban Snacks. This month’s snack is… yogurt peppermint pretzels! In this episode, we’ll be informing you on how high inflation is affecting Real Estate. Now as many of you probably already know, we as a nation are experiencing all-time high inflation. According to Realtor Magazine, in November, consumer prices increased by 6.8% compared to a year ago. This is the largest annual gain in the past 40 years! This means we have not experienced this amount of inflation since I was 12 years old! So this begs the question, “Who in real estate is going to be affected the most?”. Well, it’s most likely going to be renters. Lawrence Yun, the chief economist at NAR, states that rents are up 3% and accelerating at about 5% annually. Yun also warns that because of the increased inflation we may see mortgage rates rise in 2022. According to Freddie Mac, the 30-year fixed-rate mortgage is predicted to reach 3.7% by the end of next year. One of the ways we can protect ourselves from inflation is by owning Real Estate.
About the Author
Suburban Real Estate Group
Our team of experienced agents have facilitated the transfer of nearly $80 Million worth of Real Estate and currently manage over $30 Million worth of rental properties. By using the latest technology available in the industry, combined with their family values, buyers, sellers, and property owners can rest assured that their best interest is Suburban’s number one priority.
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