What Inflation Means for Home Sellers in Oklahoma

Recently, there has been a lot of discussion regarding inflation and how it affects all aspects of daily life. Inflation’s effects on your local real estate market manifest themselves in a variety of ways. Let’s examine what inflation implies for home sellers in Oklahoma to have a better idea of what you can anticipate when putting your Oklahoma house on the market:

Property Values Are Way up

Skyrocketing home values are a market trend that has been out of control in recent years. Real estate markets were abruptly thrown into a state of high demand and very restricted supply once the effects of the Covid-19 outbreak started to be felt throughout the nation.

This market response was brought on by a few factors. First, because of the uncertainties and possible threats the pandemic offered, both buyers and sellers second-guessed entering the market. Particularly home sellers made the cautious decision to monitor the market while they awaited how all facets of daily life would adjust to a new standard.

When the economy started to slow down, the Federal Reserve drastically lowered lending interest rates. Many homeowners found refinancing their existing mortgages to be quite appealing as a result of the interest rate reduction, and some would-be home sellers even decided against selling and instead decided to refinance.

What ultimately occurred was a massive surge in buyer demand and a lack of home supply, which led to such an offset that home prices flew through the roof.

Interest Rates Have Jumped As Well

Looking back at our earlier discussion of low interest rates, we can see that things have changed. Since the Federal Reserve raised lending interest rates three times, banks and credit unions are now lending with additional restrictions.

A lower demand for homes results from purchasers who have a harder time being authorized for a mortgage being removed from the market. Prices have remained high despite the decline in demand in large part because the imbalance between supply and demand was so severe that it’s only now starting to right itself.

Buyers Are Intensely Motivated

With high home prices and inflation having ballooned over the last few months, buyers are feeling the squeeze. 

A significant portion of Americans now rent their homes, and some of those renters are now in an unfortunate situation. Landlords are making every effort to make up for lost income at the height of the pandemic and are putting their plans into action to capitalise on favourable economic perceptions that justify boosting rents. While your rent may alter over time, the most likely reason for your mortgage payments to change is due to shifting insurance and tax rates.

A group of buyers is attempting to buy a house in Oklahoma order to avoid the risk of significant cost-of-living rises in the ensuing year or so due to this worry of rising rents.

Now Is Your Opportunity

Keeping all of these factors in mind when selling your home, understand that they are going to be temporary to some degree. 

The market will undoubtedly start to move away from being so obviously in favor of home sellers, therefore it is shrewd to take advantage of these market conditions now. The most likely outcome is a decline in demand as consumers prepare to stay put in their current residences while making plans to resume their home-buying endeavors once the market has swung more in their favor.

Getting your home on the market while this window of opportunity remains open is essential to seeing the best returns for your years of invested time, energy, and finances.

Your Guide to Buying and Selling Through Inflation in Oklahoma

If you’re concerned about how inflation will impact your home buying or selling in Oklahoma process, call our trusted team today at (539) 664-8033!