The Realtor's Guide to Inflation

Inflation has been skyrocketing recently, changing how people spend and save their money. Let's talk about some of the things that realtors need to pay attention to in this new market.

Advertise How Real Estate Can Protect Buyers from Inflation

Everybody in America is looking for ways to protect their wallet against inflation, and one of the best ways is real estate. Because of real estate's intrinsic value, housing prices generally fluctuate with the value of the dollar, which means that there's no better time to buy.

A lot of potential buyers are scared by the high prices of homes on the market now, but one of the best ways to get them past those fears is to remind them that there is no better place for their money right now.

Additionally, it's good to remind any buyers who are currently renting a house or apartment that they can completely forget about inflation when they buy a house. Rent in the United States has gone up considerably due to inflation and the general market, and the one way to avoid both of those factors is by purchasing a house and permanently locking in your monthly payment (if you get a mortgage at least).

It's Finally a Buyer's Market

As demand is starting to slow back down, we are finally seeing the transition back to a buyer's market. This is huge for potential buyers because it may be a lot easier for them to actually find a house. Homes are sitting on the market for longer now, making more sellers willing to lower their prices or even offer concessions. This means that buyers may be able to have the seller buy their rates down, pay title insurance fees, or even attorney fees. Either way, we're entering a market where your buyers may be able to get what they want without having to offer above asking or fight other potential buyers.

You'll Soon Have Less Competition

We saw a huge surge in the number of realtors during COVID. Many people started rushing into the market because they saw real estate as an easy way to make money while everyone and their mother wanted to buy a house. Now, just like with any other time of economic distress, we are going to start seeing a lot of those new realtors exit the job as they see that it's not as easy as they thought. This means that there will be less competition for the realtors who stay in the market and they will potentially be rewarded greatly when inflation slows and the market picks back up.

Start Looking For Investors

When interest rates go up like they have been recently, typically many potential homebuyers decide to rent instead of buy. This means that rents are going to continue climbing and that investors who have the money and don't care as much about rates are going to be even more interested in buying properties. If you're looking to find new business then investors may be the perfect way to go.