That's the question I'm hearing more often these days. And while I'm always a firm believer that you are the only person that can determine if it's the right time to purchase a home, here's additional information that's helpful to know when making your decision.


Homeownership is Historically a Good Hedge Against Inflation

In an inflationary economy, almost all the goods and services we're accustomed to spending money on, from groceries to gas rise, eroding your purchasing power. Historically, homeownership provides a buffer against those rising costs because you're able to lock in what’s likely your largest monthly expense — your mortgage — for the duration of your loan. That helps stabilize some of your monthly expenditures and your budget. James Royal, Senior Wealth Management Reporter at Bankrate, explains:

“A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same.”

And with rents continuing to rise, the ability to stabilize your monthly payments and safeguard against future rent hikes may be even more important. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains what happened to rents in the latest inflation report:

“Inflation refuses to budge. In September, consumer prices rose by 8.2%. Rents rose by 7.2%, the highest pace in 40 years.”

When you're renting, your monthly payment is determined by your lease and your landlord. With inflation high, your landlord may be more likely to increase your rent payments to offset the impact inflation is having on him or her. That's likely why a survey from realtor.com shows 72% of landlords said they plan to raise the rent on one or more of their properties in the next year.

As a homeowner, your home will not only provide you with reliable shelter every day, but also shield you from unexpected rent hikes that can wreak havoc on your budget.

Bottom Line

The best hedge against inflation is a fixed housing cost. If you’re ready to learn more and start your journey to homeownership, connect with me today!