Inflation Is Affecting House Pricesby Yours Tyleau Webmaster
We’ve been rocked by tumultuous times over the last several years. First
we had the pandemic, and our economy and lives ground to an instant halt. We
found ourselves staring at the four walls of our home day after day, with
quarantines becoming the norm. Fortunately, things slowly eased up and we hoped
to return to a more normal life like before. While we got some of our old life
back, in other aspect chaos still reigned.
Throughout the pandemic, we faced supply chain shortages across many
types of products, including building supplies. Then the post-pandemic boom
resulted in high inflation levels not seen since decades before. These
inflationary pressures have had a significant impact on the overall economy,
and on our wallets and pocketbooks. They’ve also had a profound effect on the
Rising Home Prices Contributed to
As we emerged from the pandemic it’s like we, as well as the world, came
to life. Freedom from restrictions and a suddenly recovered economy helped lead
to a boom in buying and movement again. In addition, high employment levels put
a lot more money in circulation as worker salaries increased.
Housing values began to soar, contributing to the overall inflationary
spiral. Instead of selling their existing home and buying a high priced new
one, many families found that adding a beautiful House
Addition Sydney was an ideal option.
Governments Tamped Down on Inflation by
Raising Interest Rates
In response to skyrocketing inflation, governments are attempting to slow
the economy by raising interest rates. Thus, if you buy a new home now, your
monthly mortgage payment will be higher than before.
Rather than paying high interest rates when selling your existing home
and buying a new one, with House
Addition Sydney you can add a first floor addition that lets
you live in your dream home without
moving at all.
High Mortgage Rates Will Reduce New Home
As mortgage rates rise in concert with government efforts to control
inflation, builders begin reducing new housing starts. Thus a family that wants
to move on to a bigger home will find a substantially reduced inventory of new
Created on Mar 20th 2023 01:27. Viewed 102 times.