It is hard to say exactly when the perfect time to buy a home is, but now might be a better time than most. At Keystone, we want our buyers to be informed and aware of the changing market, so they can make the right decisions. The Survey of Consumer Expectations (SCE) reported in March that inflation expectations have declined, which, among other things, signals a better time to buy homes.
The SCE is conducted through a rotating panel of about 1,200 households and provides insight into Americans’ expectations about future changes in inflation, the labor market and household finance. The most recent results showed a decrease in inflation expectations over both one year and three years.
This survey indicates expectations are for inflation to decrease to 2.5 percent at the one-year mark as well as the three-year mark. The telling number is the expectations for the change in home prices. The SCE showed median home price change expectations should decrease to 3 percent. These expectations remain consistent with other studies undergone since August 2015.
Although these may seem like just a bunch of numbers, this is important information for both builders and buyers. A decrease in inflation means lower home prices. Houses should become more affordable throughout the market, and that dream house just outside of your price range may now be attainable.
There may not be huge changes to inflation on the way, but even slight decreases are positives for the housing industry, and expectations typically remain close to the true numbers. Any shift downward means a shift in the right direction, and that’s a trend that should excite buyers. Don’t wait for inflation to spike back up! Buy while the time is right, and you’ll have both a new home and a thicker wallet.
For information, including details on our affordable homes, visit our website at www.KeystoneCustomHome.com.