A Solid Hedge Against Inflation

In times of economic uncertainty, real estate stands out as one of the most reliable ways to protect your wealth. Unlike stocks or bonds, real estate is a tangible asset with intrinsic value that retains its worth even during economic fluctuations. Its physical nature provides stability, making it a safe and dependable investment.

Over the past six decades, homes have soared, at an astounding annual compounded growth rate of 5.48%.  In 1963, the average home price was $19,300 and at the end of 2024, the average home price was $501,100.  In parallel, rent has steadily risen at 3.88% annually.  Inflation during the same 60-year period averaged 3.7%.

Historically, property values tend to appreciate over time, often outpacing inflation and preserving purchasing power. This appreciation not only builds equity but also ensures that your investment grows along with or ahead of inflationary pressures. Additionally, real estate investments can generate rental income, which typically rises alongside inflation, providing a steady stream of revenue to offset increasing costs.

For homebuyers, a fixed-rate mortgage offers a significant advantage during inflationary periods. Locking in a consistent monthly payment protects against rising housing costs, allowing homeowners to budget with confidence. At the same time, housing shortages in many markets help sustain property demand, supporting long-term value even when the economy experiences shifts.

Diversifying your investments with real estate also helps reduce overall financial risk. Property ownership adds balance to your portfolio and shields your wealth from the volatility often seen in other asset classes like stocks. Plus, real estate offers tax advantages, such as deductions for mortgage interest and property depreciation, which enhance returns and further mitigate inflation's impact.

Finally, real estate provides a unique combination of stability and growth potential. It is less volatile than many other investments and serves as a long-term store of value, making it a reliable asset during inflationary periods. Whether you're a homeowner or an investor, real estate remains a solid choice for safeguarding your financial future.

Real estate offers a powerful hedge against inflation, combining stability, long-term growth potential, and unique financial benefits. From appreciating property values to tax advantages and fixed-rate mortgage protections, investing in a home ensures your money works for you, even in uncertain economic times. Now is the time to explore how real estate can protect your wealth and provide lasting value.

Download the Homeownership Today Information Guide.

The summer advantage when buying a home

Summer presents an ideal time for prospective buyers to purchase a home. The warm weather and longer days create optimal conditions for house hunting and moving, allowing buyers to thoroughly inspect properties and envision their future homes in the best light.

One of the primary advantages of summer home buying is the increased inventory available. Inventory is up almost 20% as of March this year compared to 2024.  Many sellers choose to list their properties during this season, providing buyers with a wider selection of homes to choose from and increasing the likelihood of finding a property that meets their specific needs and preferences.

The competitive nature of the summer real estate market can also work in buyers' favor. With more homes on the market, sellers often price their properties competitively to attract potential buyers quickly, potentially leading to better deals or more room for negotiation.

Families with school-aged children find summer particularly convenient for relocating. The break between academic years allows for a smoother transition, giving children time to adjust to their new surroundings before starting school in a new district.

Summer's favorable weather conditions make it easier to evaluate a home's exterior features, such as the roof, siding, and landscaping. Additionally, buyers can thoroughly assess outdoor amenities like pools, patios, and gardens, which are often showcased at their best during this season.

Real estate professionals tend to be more readily available during the summer months due to increased market activity. Buyers can expect prompt assistance from agents, mortgage lenders, and home inspectors, facilitating a smoother and more efficient home buying process.

For those selling a home while simultaneously purchasing a new one, summer offers advantages on both fronts. The increased buyer activity during this season can lead to faster sales of existing properties, potentially aligning well with the timeline for purchasing a new home.

While summer home buying does come with some challenges, such as potentially higher prices and increased competition, the benefits often outweigh the drawbacks. The combination of ample inventory, favorable weather, and convenient timing makes summer an opportune season for those looking to make their homeownership dreams a reality.

By leveraging these benefits and working with experienced professionals, buyers can navigate the summer real estate market with confidence and find their ideal home.  Download our Homeownership Today guide as well as our Buyers Guide.