If you're following the news these days, you've already heard about the rise in inflation. Today, inflation is in maximum of 40 years. According to National Association of Home Builders (NAHB):

"Consumer prices accelerated again in May as rent, energy and food prices continued to rise at the fastest pace in decades. This marked the third consecutive month of inflation above of 8% and was the biggest year-on-year gain since December 1981."

With inflation risingIf you're a consumer, you'll probably feel it affecting your day-to-day life as prices rise for gasoline, groceries and more. These rising consumer costs can hurt your wallet and make you re-evaluate any big purchases you have planned to make sure they are still worthwhile.

If you're thinking of buying a house this year, you're probably wondering whether you should continue down this path or whether it makes more sense to wait. Although the answer depends on your situation, here's how home ownership can help you combat the rising costs that come with inflation.

Home ownership helps you stabilize one of your biggest monthly expenses

Investopedia explains that during a period of high inflation, prices rise across the board. This applies to things like food, entertainment and other goods and services, even housing. Both rental prices and house prices are on the rise. So, as a buyer, how can you protect yourself from rising costs? The answer lies in home ownership.

Buying a house allows you to stabilize what is usually your biggest monthly expense: the cost of housing. When you have a fixed-rate mortgage on your home, you lock in your monthly payment for the duration of your loan, usually 15 to 30 years. James Royal, Senior Wealth Management Reporter at Bankrate, says:

"A fixed-rate mortgage allows you to keep most of your living expenses with the same payment. Sure, property taxes will rise and other expenses may increase, but your monthly housing payment remains the same. That's certainly not the case if you're renting."

So even if other prices rise, your housing payment will be a reliable figure that can help keep your budget under control. If you rent, you won't get the same benefit and you won't be protected from rising housing costs.

Investing in an asset that historically outperforms inflation

While it's true that rising house prices and higher mortgage rates mean that buying a house today costs more than it did a few months ago, you still have the opportunity to make the most of it. preparing for a long-term victory . This is because, in inflationary times, you want to invest in an asset that outperforms inflation and normally maintains or grows in value.

So what does this mean for you?

Today, experts predict that house prices will only go up from here, thanks to the continuous imbalance between supply and demand. After buying a house, any appreciation in the price of the house that occurs will increase your assets and its net equity. And since houses are typically assets that grow in value, you can be sure that history shows that your investment is strong.

This means that if you're ready and able, it makes sense to buy today before prices go even higher.

See an article with more arguments:  What does an economic slowdown mean for the real estate market? If you're thinking of buying a house this year, it makes sense to act sooneven as inflation rises. This way, you can stabilize your monthly housing costs (or take advantage of rent growth to make more money) and invest in an asset that historically outperforms inflation. If you're ready to get started, let's connect so you can get expert advice on your specific situation when you're ready to buy a home.

Any doubts?

Now that you know how inflation and house prices behave during periods of high inflation in the United States, you can consider investing in vacation homes in Orlando. To make the most of all the tips we've given you and go even deeper, you can talk directly to our relationship agents. They are always happy to talk to you to answer any questions you may have about investing in Florida.

In this article, we've covered the topic of the behavior of the real estate market during recessions because it's interesting for those looking to invest in Florida. If you would like to read more content like the one in this article, just stay tuned to our blog.

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