With the inflation rate at a nearly 40-year high, you don’t need to look far to feel the effects. From the fuel pump to the grocery store and everything in between, Americans are having to spend significantly more money on essentially everything. With this said, inflationary pressures are also affecting both home buyers’ and home sellers’ decision making and plans. As an example, higher fuel costs may force a home buyer to consider a home purchase that will result in a shorter commute to work. On the flip side, some buyers opt to spend less money on a home further from work in order to utilize the cost savings on a more fuel-efficient vehicle.
Home buyer and seller reaction
A recent study looked at home buyers and sellers that are looking to buy or sell within the next 12 months. Below are the findings:
- Overall, 73% of both buyers and sellers stated that inflation is influencing their future plans.
- 29% of home buyers are delaying their plans due to inflation.
- 24% of home buyers are moving up their plans due to inflation.
- 11% of home buyers are canceling their plans due to inflation.
- 7% of home sellers are delaying their plans due to inflation.
- 10% of home sellers are moving up their plans due to inflation.
- 3% of home sellers are canceling their plans due to inflation.
The current record-breaking inflation level is impacting American budgets across the country. Interestingly, we see people respond differently in the real estate market as evidenced with the survey results above. Nonetheless, it is important to remember that all real estate is local. Therefore, it is critical that you closely study your local real estate market in order to make an educated decision. For example, the South Florida housing market continues to see robust demand and this is expected for the foreseeable future. Therefore, many home buyers in this region may choose to move up their home buying plans as compared to those in other markets throughout the country.
At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!