Inflation and the housing market: Decoding the latest numbers
The May 2023 Consumer Price Index (CPI) rose 0.1 percent, compared to a 0.4 percent increase in April. According to the latest figures from the U.S. Bureau of Labor Statistics, released June 13, the all-items index increased 4.0 percent over the past year before seasonal adjustment, a decrease from April’s 4.9 percent.
Overall, inflation has now slowed for 11 straight months and is down significantly from its peak of 9.1 percent last summer. Despite the progress, though, it remains above the Federal Open Market Committee’s stated goal of 2 percent. Here’s a peek into how inflation affects the housing market.
Inflation and the housing market now
The shelter category, which includes housing costs, was once again the largest contributor to the CPI’s monthly all-items increase. Shelter increased 0.6 percent in May and 8.0 percent over the last year.
Inflation hasn’t yet shaken its reputation for being higher and more stubborn or persistent than liked.— MARK HAMRICK, BANKRATE SENIOR ECONOMIC ANALYST
Should I Buy A House When Inflation Is Rising?
During periods of rising inflation, the price of everything from groceries to gas increases. Housing prices are no different: They, too, tend to rise during periods of higher inflation.
Does buying a house ever make sense during periods of rising inflation? That depends. If you don’t buy when housing prices start to rise, they might only get higher as you wait. Or, those prices might fall if you wait to buy. The problem? No one knows how high housing prices will rise, no matter what is happening in the economy.
What’s most important is buying a house when the time is right for you, whether prices are rising or falling. Look at your own situation and consider a few questions – Is your family growing or shrinking? Do you have the chance to move across the country for a job promotion? – before deciding whether the time is right to buy a home.
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Owning a Home Helps Protect Against Inflation
You’re probably feeling the impact of high inflation every day as prices have gone up on groceries, gas, and more. If you’re a renter, you’re likely experiencing it a lot as your rent continues to rise. Between all of those elevated costs and uncertainty about a potential recession, you may be wondering if it still makes sense to buy a home today. The short answer is – it does. Here’s why.
Homeownership actually shields you from the rising costs inflation brings.
Freddie Mac explains how:
“Not only will buying today help you begin to build equity, a fixed-rate mortgage can stabilize your monthly housing costs for the long-term even while other life expenses continue to rise – as has been the case the past few years.”
Unlike rents, which tend to rise with time, a fixed-rate mortgage payment is predictable over the life of the mortgage (typically 15 to 30 years). And, when the cost of most everything else is rising, keeping your housing payment stable is especially important.
Ralene Nelson, REALTOR®
PENDING SALE – 524 Birch Ridge Dr. Rio Vista
2 bed/2 bath/1,172sqft/4,095sqft lot
$430,000 – Beautiful Carmel model, with custom entry & drought resistant landscaping (front & back). Very relaxing & private back yard, fully fenced for your pet. With upgraded front door, you enter this charming home, 2 bedroom, 2 baths, with bay windows in the nook & primary bedroom. Newer laminate flooring, plantation shutters in great room & 2nd bedroom. 2nd bedroom has build in unit with file drawer & desk space for your computer. Kitchen has newer stainless appliances, refrigerator, microwave & gas stove, oak cabinets, pantry, reverse osmosis & overlooks backyard. Primary bedroom overlooks the back yard & has walk-in closet. Primary bath has double sinks & walk in shower. Electric fireplace adds to the cozy great room. Laundry room has been updated w/sink & stackable washer/dryer. Now step out into this peaceful, relaxing & private backyard, with patio/cover and a lovely water fall. Enjoy your music & a beverage. Garage has built-in storage cabinets & ceiling storage units. Move in ready, so come join the fun at Trilogy. Ammenities include tennis/pickle ball courts, bocce ball courts, 2 pools/spas, gym, golf, computer room & many clubs to join. Are you interested in theater, card groups or other interests? Look no further!! Trilogy has a restaurant & cafe. No Bonds!! MORE INFO
FOR SALE – 181 Cedar Ridge Dr. Rio Vista
2 bed/2 bath/1,433sqft
New Price $519,500 – Look no further!! This Clipper model is like a new home, completely renovated, from new sheet rock to all new cabinets throughout, new baths, laminate flooring, quartz counters, appliances, and new interior & exterior paint. Located on the 11th fairway, bring some patio furniture & enjoy the scenery. This model provides a living room/dining room & a nook/great room. Trilogy provides so many amenities, including 2 swimming pools/spas, bocce courts, billiards, tennis courts, pickleball, gym & more. READ MORE
PENDING – 731 Turnberry Ter Rio Vista
2 bed/2 bath/1410 sqft
$405,000 – NO BONDS-Spinnaker model with private backyard. This 2 bedroom, 2 bath home feels like a very relaxing cottage for a retirement home. The patio provides a quiet place for morning coffee & afternoon beverage. Den has built-in book/curio shelves & bay window. The Master bedroom has a bay window, which creates room for a sitting area. New hot water heater. Enjoy amenities such as golf, tennis, bocce, pools/spas & a new gym, and more. READ MORE
Pending Sale – 295 Sage Meadows Drio Vista
3bed/3.5bath/2,367sqft/6,669sqft lot
NEW PRICE $549,000 – Calistoga model, with private courtyard, located on a corner lot. New interior paint (including garage) & tile/grout cleaned, gives this home a fresh look. Island kitchen with granite tile, black appliances, w/5 burner gas stove top & maple cabinets. Open floor plan makes this a great home for entertaining & the fireplace makes it cozy. Large master bedroom has bay window, upgraded tile in bath (walk in shower & tub). Den has been enclosed as well as another room, so this could be 4 bedrooms. One can be your den, other can be your craft/sewing room. 2nd bedroom has full bath, with courtyard entrance. Laundry room has sink, cabinets & folding space. Full patio & fencing secures this backyard for your family pet. Trilogy offers many amenities, from tennis, bocce, billards, pickle ball, golf, 2 pools & spas and even playground for grandchildren. Just bring your furniture & make new friends.READ MORE
Events in Northern California this Weekend
The Crawdad Festival
Saturday, June 17 · 10am – 8pm
Main Street, Isleton
California’s Largest Crawdad Festival is Back! Join us for a festive Father’s Day Weekend full of exciting fun for the whole family!
The Crawdad Festival is a 2-day event, June 17-18, 2023. The event is focused around the authentic Louisiana food and music including Zydeco, Cajun, Blues, and Louisiana based Rock n’ Roll. This crawfish and music oriented event draws upon the culture and cuisine of New Orleans and a feel of French Quarters for inspiration. With live entertainment and exciting activities, tons of crawfish, an array of international food and desserts, adult beverages and a festive atmosphere, this is a great event for all ages.
The Festival Includes:
- Live Music & Performances
- A whole lot of Crawfish!
- Authentic Louisiana Cajun Cuisine
- Adult Beverages & Specialty Drinks
- Food Vendors
- Marketplace Vendors
- Louisiana Second Line Parade
- Kids Zone
- Games and Activities
Fathers Day Car Show
Sunday, June 18 · 10am – 2pm
Willow Park Mercantile, 205 G Street Antioch
Join Us this June 18th for our Annual Father’s Day Car Show! This Fun Family Friendly Event Features Lots of Beautiful Cars & Trucks, Music and Great Food from our Rivertown Restaurants! We will have Raffles, Father / Child Look Alike Contest All Proceeds Raised Benefit Celebrate Antioch Foundation! Come Join the Fun and Celebrate Dad! Entry and Parking are Free, Parking Available at City Hall Parking Lot & Nick Rodriquez Community Center. READ MORE ~ BUY TICKETS
Man Cave on the River Fathers Day Dinner
Sunday • 3:00 PM – 7:00 PM
Wimpy’s Marina Restaurant, Bar & Grill
14001 West Walnut Grove Rd. Walnut Grove
Join us for Man Cave on the River Father’s Day Dinner/Fundraiser for great food and live music in the California Delta! READ MORE ~ BUY TICKETS
Guided Paddle along the Cosumnes River
Saturday, June 17 · 8 – 11am
Cosumnes River Preserve 13501 Franklin Blvd. Galt
Join experienced naturalists for a leisurely paddle up the Cosumnes River and its peaceful sloughs. We’ll likely see forest birds, raptors, egrets, herons, cormorants, and maybe deer, a beaver, and/or an otter. We’ll talk about the flora and fauna found in this riparian corridor, and about the first people to live here, the Plains Miwoks.
Bring your own boat (canoe, kayak, SUP), paddle, and PFD.
We will meet at the Cosumnes River Preserve Visitor Center Parking lot.
Please be there and have your boat unloaded and ready to put in by 7:45 a.m. at the latest, because we will depart from the parking lot at 8:00. We’ll be back at the parking lot around eleven. READ MORE ~ BUY TICKETS
