Headlines broadcasting news of interest rate hikes and rising mortgage rates have been coming at consumers fast and furious for most of 2022. And there’s no question the housing market has seen a deceleration as a result of that economic equation. But for home buyers seeking out deals or looking to protect themselves against inflation, now may be the perfect time to take the leap, especially for those who have their heart set on new construction.

The slowdown is affecting all property types and locations differently and new developments are no exception. While inventory has been historically low within the vertical, pre and new construction have still felt the impact of a slowing market, creating wiggle room in list prices. An additional benefit of investing in a development still under construction is that developers are usually incentivized to sell a certain percentage of units quickly in order to meet financial requirements.

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From the grocery store to your energy bills, inflation has become a reality of everyday life. And while June’s inflation reading of 9.1% – a 40-year high – has caused many people to reexamine their budgets, hard assets like real estate are still very much in favor because they offer protection against rising prices. Here are a few reasons why real estate can serve as a hedge against inflation.

Fixed Expenditure

With a fixed-rate mortgage, the monthly payment (principal and interest) for your home will remain the same, whereas rental costs will rise. On top of that, mortgages become “more affordable” over time as wages increase and the value of the dollar decreases.

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With interest rates rising amid high inflation, it can be a challenging time to save for a down payment and break into the housing market. However, there are a variety of things both large and small that can immediately shave costs and grow your nest egg – perhaps even faster than you anticipated. Here are a few tips:  

Household Audit  

Begin by auditing all your expenses each month and know exactly where your money is going. This may sound obvious, but forgotten expenditures add up and can often be scaled back. This is where you’ll notice subscriptions and streaming services you may not use, or insurance policies that you are potentially overpaying on. Take the time to cancel items or renegotiate how much you’re paying for certain things, and you’ll soon tally up savings.  

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