You are probably already well aware of how inflation impacts your grocery bill. However, if you are interested in buying or selling a home, you may not know what to expect. The truth is that inflation impacts the housing market, just like the rest of the economy. Here are the basics of what is happening in real estate and how the experts at Chatham Homes Realty can help you navigate the market during this complicated time.

How Inflation Affects Real Estate

There is no question that housing prices are up. But how does inflation drive up those costs? There is more than one way it affects the cost of homes. Here are some of the major ways inflation seeps into the housing market.

Income Generating Asset

Investors are always looking for assets that give them the best return at the lowest risk. During times of inflation, market turmoil makes other investments riskier, which makes real estate even more enticing than usual. 

Owning and renting property is a reliable, stable form of income. As investors buy more real estate, it reduces the number of available homes, making them more valuable. 

Limited Amount of Real Estate

One of the causes of inflation is a greater amount of money supply in the economy. The more money in people's hands, the more they can spend on things--including houses. This inflation reduces the pressure on the market to keep prices low. Only so many houses are available, so each one becomes more valuable. 

Housing Construction Costs Increase

Inflation increases the price of everything. As the cost of building materials, land, and labor climb, home builders must recoup their expenses when they sell houses. As a result, each new home is more expensive.

What Does Inflation Mean to Homebuyers and Sellers?

If you are interested in either buying or selling a home, inflation will complicate the process on either side of the equation. 

Buyers are staring down the prospect of spending more money to get the property they want. Not only are housing prices higher, but interest rates are also up, which will increase their monthly payments.

Although wages eventually catch up with inflation, they usually lag behind the rise in costs, meaning that earners have less money in their pockets, even if they are making the same amount. Because of all this, they may have to consider buying a smaller property than expected. 

For sellers, these pressures on buyers may make it necessary for them to lower their asking price. On top of that, they will be facing all the same issues if they're also buying a property after they sell theirs.

These pressures do not mean that it is impossible to purchase or sell property in the midst of inflation. After all, a property is a good asset to have as you weather inflation. But it is even more important to work with an expert you can trust during times like this. 

Why Working with Professionals is Important When Buying or Selling

During periods of inflation, pressures such as interest rates, climbing prices, and income that hasn't quite caught up with the surge in costs, buyers and sellers face more obstacles. Because of this, you want to work with a real estate agent who knows what they're doing when the market fluctuates. 


Experienced agents know how to navigate problems such as growing interest rates and a soft buyer's market and understand the different ways to adjust to the pressures. The process may not be as easy as it was a year ago, but it's still possible. 


At Chatham Homes Realty, we understand that the housing market is always changing. Periods of inflation call for different approaches, but our goal is always the same: satisfaction and security for our clients.

Chatham Homes Realty is Your Trusted Real Estate Connection During Inflation Periods

Our experienced real estate agents have seen plenty of ups and downs over the years, so we know that there's no reason to panic. We will help you get through the new demands on buyers and sellers and help get you to your goal. We will never pressure you into a purchase or sale that isn't right for you.

Home buyers and sellers have to cope with different challenges during this inflation time. But we know how to get through this, and we're here to help you. Please get in touch with us if you have any questions about what we can do for you.