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In recent times the playing field for buying opportunities in the housing market has expanding in just about every category, with the exception of a less abundant inventory. There is pressure now being put on this “Field of Dreams” which may start changing the rules of the game for buyers and sellers.
The pressure we are beginning to feel is due to the eminent effects of inflation. With the world around housing becoming more expensive so is the pressure for housing to become more valued.
Here are some of the inflationary factors that are coming into play.
1) Loans are becoming more expensive. FHA has announced that mortgage insurance for FHA loans will increase April 1, 2012 and again on June 1, 2012. This is one example of the increasing costs of borrowing money and a sign of things to come.
2) Renting is becoming more expensive. CNN Money and Forbes point this out in their recent articles, Home Buying Much Cheaper Than Renting and Where Buying Beats Renting A Home.
3) Other forms of investment have become more expensive and many feel that inflation rates are poised to go up. This is affirmed by The Financial Forecast Center.
The current field of dreams still has many opportunities. I look forward to hearing from you and appreciate your inquiries!
