Market Report

Real Estate is a Classic Hedge Against Inflation

The 30-year fixed mortgage just hit 4%, inflation is at 7.9% and the financial markets are volatile so no doubt you’re asking yourself what you can do to protect yourself. Let me suggest that real estate is a classic hedge against inflation. Let’s begin with a super pragmatic aspect of the fact that if you are a renter and we have inflation, the cost of fuel and labor alone are going to go up and your landlord is going to pass this cost onto you. Now if you want any sort of control over your housing cost you should be buying. 4 % rates are still historically low. If you act quickly, you can get rate locks and remember you want to be looking at homes with low mortgages low monthly costs and low real estate taxes. So, the pool paying really high monthly costs.

As an asset class, the stock market actually isn’t that closely linked to real estate. In New York City we certainly think of it as being closer than it is because we know that when there a big bonuses on Wall Street, big sales in the market. Property values over time tend to stay steady and go on an upward curve which doesn’t make for really sexy or interesting graphs, but you know if you’re holding a property for 7 to 10 years, they really do perform well. The Corcoran Group has excellent research and I can avail myself of 10-year data so if you’re interested in a particular neighborhood or you want to see which neighborhoods have performed well over a ten-year period of time, I’m happy to share that information with you.

Finally let’s not forget that if you’re buying a property, whether it be a primary home, your first home second home or an investment property, while inflation is driving prices up it will drive up the value of the property you own so why not getting the game now? If you are looking to invest in Manhattan, whether you’re a buyer, seller or an investor, reach out to me today. I’ve been helping people like yourself for the past 21 years.

Categories: Market Report

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