Homeownership Helps Protect You from Inflation [INFOGRAPHIC]
KCM • July 7, 2023
Homeownership Helps Protect You from Inflation [INFOGRAPHIC]
Some Highlights
- Wondering if it makes sense to buy a home today even when inflation is high? When other costs go up due to inflation, buying a home helps you keep your monthly housing expense steady.
- Rents typically increase with inflation. Maybe that’s why, according to a recent survey, 65.1% of landlords say they plan to raise the rent of at least one of their properties within the next 12 months.
- Especially when inflation is up, having a stable housing payment can be helpful. Let’s connect so you can learn more and start your journey to owning a home today.
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More Buyers Are Planning To Move in 2026. Here’s How To Get Ready. Momentum is quietly building in the housing market . New data from NerdWallet shows more Americans are starting to think about buying a home again. Last year, 15% of respondents said they planned to buy a home in the next 12 months. This year, that number rose to 17%. That 2% increase might not sound like a big jump, but in a market where buyer demand has been cooling for the past few years, it’s a sign things are starting to shift . More people are feeling ready (or at least closer to ready) to take the leap and buy a home in 2026 . And if you’re in that camp and buying a home is on your goal sheet this year, this is your nudge to connect with a local agent and a trusted lender to start laying the groundwork now. Planning To Move in Early 2026? Start with These 4 Steps If you’re eager to get the ball rolling right away, here's what to tackle first: Get pre-approved . A pre-approval gives you a real understanding of your buying power and what your payment could be at today’s rates. But keep in mind, Experian says most pre-approvals are only good for 30-90 days, so this step makes the most sense as you’re ready to get serious. Run the numbers. Look closely at all your expenses to come up with your budget. Consider what you’re spending on other bills and what your monthly mortgage payment would be once you buy. That way you go in with open eyes and you don’t stretch too far. Define your non-negotiables . Once you know the numbers work, figure out your must-haves. This includes your desired location, commute, layout, school district, lifestyle needs, etc. Getting clear on these now makes decisions easier once you start looking at homes. Choose your agent early . Look at reviews online and talk to multiple agents to find one you trust that you also click with. The right agent does more than show homes. They help you understand pricing, competition, timing, and strategy before you ever write an offer. Thinking about Buying Later in the Year? This Is Still Your Window To Prepare Even if buying feels like a late-2026 goal, this moment still matters. The buyers who feel the most confident later are usually the ones who quietly prepared earlier. That doesn’t mean big financial commitments or major lifestyle changes. It just means setting yourself up so you’re ready when the timing is right. Here are a few low-stress ways to do that: Work on your credit. While you don't need to have perfect credit to buy a home, your score can have an impact on your loan terms and even your mortgage rate. So, working to bring up your score has its perks. Paying down debt now and making payments on time can help bring your score up. Automate your savings. If you have to remember to transfer money into your homebuying savings manually, you may forget to do it. So, you may want to set up automatic transfers to drive consistency and remove the temptation to spend the money elsewhere. Lean into your side hustles: Do you have a gig you do (or have done before) to net some extra cash? Taking on part-time work, freelance jobs, or picking up a side hustle can help give your savings a boost. Put any unexpected cash to good use: If you get any sudden windfalls, like a tax refund, bonus, inheritance, or cash gift from family, put it toward your house fund. You’ll thank yourself later. The common thread here? The right prep work makes a difference. Bottom Line If buying a home in 2026 is on your radar, let’s start the conversation today. Not to rush a decision, but to make sure you know how to get ready for your moment. Because every move (whether it’s next year or later) is smoother when it starts with a plan. And if you need help coming up with one that works, let’s connect.
Not Sure If You’re Ready To Buy a Home? Ask Yourself These 5 Questions. If you’re trying to decide if you’re ready to become a homeowner in the next twelve months, there’s probably a lot on your mind. You’re thinking about your finances, today’s mortgage rates, home prices, the current state of the economy, and more. And, you’re juggling how all of those things will impact the choice you’ll make. It’s a lot. But here’s what you need to remember. While housing market conditions are definitely a factor in your decision, your own personal situation and your finances matter too. As an article from NerdWallet says: “Housing market trends give important context. But whether this is a good time to buy a house also depends on your financial situation, life goals and readiness to become a homeowner .” So, instead of trying to time the market, focus on what you can control. Here are a few questions that can give you clarity on whether or not you’re ready to make your move. 1. Do you have a stable job? Buying a home is a big commitment. You’re going to take out a home loan stating you’ll pay that loan back. Knowing you have a reliable job and a steady stream of income is important and will give you peace of mind for a purchase so large. 2. Have you figured out what you can afford? If you have a reliable paycheck coming in, the next thing to figure out is what you can afford . This depends on your budget, spending habits, debts, and more. At this point, it helps to talk with a trusted lender. They’ll be able to tell you about the pre-approval process and what you’re qualified to borrow, current mortgage rates and your approximate monthly payment, closing costs, and other expenses you’ll want to budget for. That way, you have a good idea of what to expect. 3. Do you have an emergency fund? As you crunch your numbers, you'll want to make sure you have enough cash left over in case of emergency. Think about it. You don’t want to overextend on the house, and then not be able to weather a storm if one comes along. It’s not a fun topic, but it’s an important one. As CNET says: “You’ll want to have a financial cushion that can cover several months of living expenses, including mortgage payments, in case of unforeseen circumstances, such as job loss or medical emergencies.” 4. How long do you plan to live there? It was mentioned above, but buying a home comes with some upfront expenses. And while you’ll get that money back (and more) as you gain equity, that process takes some time. If you plan to move again soon, you may not recoup your full investment. So, how long should you stay put in an ideal world? Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains: “Five years is a good, comfortable mark. If the price of your home appreciates considerably, then even three years would be fine.” So, think about your future. If you’re going to live there for a while, it may make sense to go for it. But, if you’re looking to sell and move within a year or two because you’re planning to transfer to a new city with that promotion you’ve been working so hard for, or you anticipate you'll need to move to take care of family, those are things to factor in. 5. Do you have a team of real estate professionals in place? If you do, great. But if you don’t, finding a trusted local agent and a lender is a good first step. Having the right team can make figuring out everything else easier. The pros can talk you through your options and help you decide if you’re ready to make your move, or if you have a few more things to get in order first. Bottom Line If you want to have a conversation about the most important things you need to consider when buying a home, let’s connect.
Is January the Best Time To Buy a Home? You may not want to put your homebuying plans into hibernation mode this winter. While a lot of people assume spring is the ideal time to buy a house , new data shows January may actually be the best time of year for budget-conscious buyers. Kind of surprising, right? Here’s why January deserves a serious look. 1. Prices Tend To Be Lower This Time of Year Lending Tree says January is the least expensive month to buy a home. And there’s something to that. January has historically offered one of the lowest price-per-square-foot points of the entire year. But the spring? That’s when demand (and prices) usually peak. And that’s not speculation – it's a well-known trend based on years of market data. So, how much less are we talking? Here’s a look at the numbers. According to the last full year of data, for the typical 1,500 square foot house, buyers who closed on their home in January paid around $23,000 less compared to those who bought in May. And that general trend typically holds true each year (see chart below): Now, your number is going to depend on the price, size, and type of the home you’re buying. But the trend is clear. For today’s buyers, it's meaningful savings, especially when affordability is still tight for so many households. 2. Fewer Buyers and More Motivated Sellers And why do buyers typically save in the winter? It’s simple. Winter is one of the slowest times in the housing market each year. Both buyers and sellers tend to pull back, thinking it’s better to wait until spring. And that means: You face less competition You’re less likely to get into a multiple offer scenario Sellers are more willing to negotiate (since there aren’t as many buyers) With fewer buyers in the market, you can take your time browsing. But winter doesn’t just thin out the pool of buyers, it also reveals which sellers truly need to sell. Because fewer people are house hunting during the colder months, sellers who really need to move tend to be more open to negotiating. As Realtor.com explains: “Less competition means fewer bidding wars and more power to negotiate the extras that add up: closing cost credits, home warranties, even repair concessions. . . these concessions can end up knocking thousands of dollars off the price of a home.” This can include everything from price cuts to covering closing costs, adjusting timelines, and more. It doesn’t mean you’ll automatically get discounts on every home. But it does mean you’re more likely to be taken seriously and given room to negotiate. Should You Wait for Spring? Here’s the real takeaway. When you remove the pressure and frenzy that comes with the busy spring season, it becomes much easier to get the home you want at a price that fits your budget. But if you wait until spring, more buyers will be in the market. So, waiting could actually mean you spend more and you’d have to deal with more stress. Now, only you can decide the right timing for your life, but don't assume you should wait for warmer weather before you move. Buying in January gives you: less competition , potentially lower prices , and more motivated sellers . And those are three perks you’re not going to see if you wait until spring. Bottom Line If you’ve been thinking about taking the next step, this season might give you more opportunity than you think. Curious what buying in January could look like for you? Let’s take a closer look at your numbers and the homes that are available in our area.
