What is going ON with the price of housing?

I’m sure you’ve noticed that buying a home is getting more and more expensive – especially in large cities. According to this article from Forbes, housing prices have risen by just over 13% from March 2020-2021. 

To be clear, that’s not just specific areas where the market’s hot – this is across the country. 

This rise in housing costs is not just caused by general inflation, tight labor markets, or the effects of the pandemic. 

They’re being caused by ultra-low interest rates and a short supply of available homes to buy. Simply put, people are staying where they are. 

Probably because even though sellers might sell their homes for way more than they paid, they’re still competing in the same hot market when they’re buying again.  

The profit they make off the sale of their home won’t get them a better house. I’d call it a lateral promotion. 

The sad part is, even though the rise of housing costs is expected to slow down, it won’t stop.

The good news is that if you’re looking to downsize, you might be in a better position. If you have a large home in a hot market, it might be possible for you to sell it and find something smaller for a lower price and add the remaining profit from the sale of your old home to your nest egg.

This is just one of the countless ways that you can prepare for retirement! And – I’ve got tons more where that came from. 

If you’d like to get my eyes on your money, book a 15-minute chat by calling 513-563-PLAN (7526) or heading online. You and I can talk about how you can use what you have now to your advantage and create an actionable roadmap that will see you through your retirement and beyond. 

Regards,
Nikki Earley, CFP®