Buying & Renting Real Estate : How Does Inflation Affect House Prices?

Buying & Renting Real Estate : How Does Inflation Affect House Prices?


Hello, my name is Penny Smith and I’m a real
estate broker in North Carolina and I’m here to talk to you today on how does inflation
affect house prices? Well, as the price and demand concept is used in real estate. The
inflation that the demand is higher for the house. Which means there are more buyers looking
to buy than there is to sell. So as the houses are sold and there are fewer houses on the
market for sale, that is inflation of the houses which means the houses will sell for
a higher price. As the higher price goes up, there will be fewer and fewer houses that
will qualify the buyers will qualify for. Which means basically that the housing market
will slow down to a certain percentage. However, as the inflation does go up the prices on
the houses do go up. So keep that in mind when you are looking for a house to buy. Timing
is everything and it is just as important as location when you are buying a house. That
is how inflation does affect the housing market. Thank you and I hope you have a great day.

One thought on “Buying & Renting Real Estate : How Does Inflation Affect House Prices?

  1. Not exactly inflation, you mean it is supply and demand. Inflation occurs when the government prints too much money and the value goes up simply because there are more dollars on the market to buy those houses and the price rises because of it.

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