Real estate has just been voted the best investment for the eighth year in a row— better than stocks, gold, and savings! But that’s not all real estate can hold its own against by comparison.
Real estate is also a time-honored inflation hedge. In fact, for the last decade, home price appreciation has beat inflation by several percentage points.
During times where inflation is mounting, rising costs of rent can also be a major concern. However, as a homeowner, fixed-rate mortgages can help you keep your monthly housing payment the same.
“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,” said James Royal, Senior Wealth Management Reporter at Bankrate. “That’s certainly not the case if you’re renting.”
Homeowners are essentially shielded from increasing rental prices as their payment is fixed, no matter what’s happening in the local or greater real estate market. And since real estate assets get much more valuable over time, buying a home is a wise investment during periods of inflation.
Market conditions are also ideal for home buying in Metro DC, Bethesda, Chevy Chase, and Northern Virginia. Given the last several decades, mortgage rates are hovering around historic lows— making the current market prime for homebuyers, but with competition staying strong.
Why the strong competition? As mortgage rates continue to rise, home price growth is projected to stabilize. However, given the large number of new homebuyers in the market, and the shortage of inventory for them, buyers can expect to continue to see a competitive housing market.
Thinking about buying a home in Metro DC this year? Give The Estridge Group a call today! We’d love to walk you through the home buying process and share a list of available homes in the area.
Source: Keeping Current Matters