Advertisement

Real estate market is feeling the effects of inflation

Real estate rising with inflation rate
Published: May. 15, 2022 at 9:36 PM CDT
Email This Link
Share on Pinterest
Share on LinkedIn

PINE BELT, Miss. (WDAM) - Inflation is not just affecting the pumps or the grocery store shelves, but the real estate market as well.

According to the National Association of Realtors, the median home price in all Pine Belt counties had risen a minimum of $50 from 2020 to 2021, and the rising prices have not stopped.

“I’d say the biggest impact from inflation is the government’s reaction to it,” said South & Company Properties Realtor Joe Brumfield. “With a recent spike in interest rates, that’s pricing some folks out of homes at certain price points.

“All of a sudden, your monthly mortgage is going to be $100, $150, maybe $200 more a month or even more than that.”

Rising rates in real estate is causing some hesitancy among first time home buyers. Many are taking a step back or avoiding the process in general.

“I’ve certainly seen some buyers become renters overnight, but there’s even a lack of rental properties just in the Hattiesburg area,” said Brumfield. “It really just comes down to, ‘Is this home going to be a blessing to you or a burden?’

“If it’s not going to be something that’s going to be a blessing for you and your family, then perhaps it’s not the time to buy.”

While a few thousand dollars may be added to a price of a home or mortgage, local realtors encourage the purchase of a home that fits the buyer’s needs,

“Don’t let a couple thousand dollars on a $300,000 house get between you and a house that’s going to be a blessing for you in the long term,” said Brumfield.

To see median home prices by county, click here.

Copyright 2022 WDAM. All rights reserved.

Want more WDAM 7 news in your inbox? Click here to subscribe to our newsletter.