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How Does Inflation Affect The Industry And Realtors in Sacramento

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The Sacramento Real Estate Industry is very promising and has a bright future ahead. But since inflation rate fluctuates every now and then, the whole industry and the realtors are now facing a dilemma that can generally put them into huge trouble in the long run. Before we go further, let us first define inflation and connect it with real estate.

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How Does Inflation Affect The Industry And Realtors in Sacramento

  1. 1. How Does Inflation Affect The Industry And Realtors in Sacramento ©www.DavidYaffeeTV.com
  2. 2. How Does Inflation Affect The Industry And Realtors in SacramentoThe Sacramento Real Estate Industry is very promisingand has a bright future ahead.But since inflation rate fluctuates every now and then, thewhole industry and the realtors are now facing a dilemmathat can generally put them into huge trouble in the longrun. Before we go further, let us first define inflation andconnect it with real estate. ©www.DavidYaffeeTV.com
  3. 3. How Does Inflation Affect The Industry And Realtors in SacramentoInflation –The term inflation is a rise in the general level of prices ofgoods and services in an economy over a period of time.When the general price level rises, each unit of currencybuys fewer goods and services. ©www.DavidYaffeeTV.com
  4. 4. How Does Inflation Affect The Industry And Realtors in SacramentoConsequently, inflation also reflects wearing down in thepurchasing power of money –a loss of real value in the internal medium of exchangeand unit of account in the economy. In anotherdefinition, Inflation is the sustained increase in theaverage cost of goods and services. ©www.DavidYaffeeTV.com
  5. 5. How Does Inflation Affect The Industry And Realtors in SacramentoIt is measured in an annual percentage rate that showsyou how much less your dollar will buy this year asopposed to previous years."People have written books and gotten into life-longdebates about the causes of inflation, but there are twotheories that are most agreed upon. ©www.DavidYaffeeTV.com
  6. 6. How Does Inflation Affect The Industry And Realtors in SacramentoDemand-pull inflation happens when there is anabundance of money and not enough products or servicesto meet the demand of that money.Cost-push inflation happens when companies costs go upand they cant keep their level of profit so they increasetheir prices and pass it on to the consumer." ©www.DavidYaffeeTV.com
  7. 7. How Does Inflation Affect The Industry And Realtors in SacramentoInflation and its connection to Real Estate - Inflation andreal estate are two subjects that are interconnected witheach other.But both can be very complicated and according to someanalysts, inflation in real estate can take years to learnwhat exactly happens and when it happens to bring abouthigher prices. ©www.DavidYaffeeTV.com
  8. 8. How Does Inflation Affect The Industry And Realtors in SacramentoWe actually dont know when the inflation starts tohappen, but we know that prices go up. This is true in thehousing industry too.How far will the prices go? When inflation gets to thepoint that the general public can no longer afford to buy ahouse or anything else they need to survive, then thehousing prices start to come down. ©www.DavidYaffeeTV.com
  9. 9. How Does Inflation Affect The Industry And Realtors in SacramentoBuying a House During Inflation –Here is a tip given by a real estate agent.According to him, when there is inflation, then buying ahouse could be an excellent move. ©www.DavidYaffeeTV.com
  10. 10. How Does Inflation Affect The Industry And Realtors in SacramentoHe added that If inflation is at an all-time high in realestate, you should wait to buy a house.As inflation affects lives and people need to sell theirhomes, they will be forced to sell for less than it waspreviously worth. ©www.DavidYaffeeTV.com
  11. 11. How Does Inflation Affect The Industry And Realtors in SacramentoAs fewer homes are put on the market, the competitionfor the buyer goes up and the prices are reduced.Since there are not as many buyers who can afford to buya reduced-price house during an inflationary period, thehousing market slows down quite a bit. ©www.DavidYaffeeTV.com
  12. 12. How Does Inflation Affect The Industry And Realtors in SacramentoIf you have to buy a house during this time, make sureyou get a fixed-rate mortgage to protect you from higherinterest rates.Realtors get affected by inflation - As inflation increasesand forces the prices of real estate down, even investorsare hesitant to buy so when this happens, realtors will losehuge amount of money. ©www.DavidYaffeeTV.com
  13. 13. How Does Inflation Affect The Industry And Realtors in SacramentoThese investors dont buy properties during this juncturebecause it takes too long to sell the homes.Real estate industry and the realtors as well are the first toreact during inflation and they are the first ones to bebenefitted when the economy went back to its normalstate. ©www.DavidYaffeeTV.com
  14. 14. How Does Inflation Affect The Industry And Realtors in SacramentoLooking for a Realtor Sacramento?Then visit us at www.DavidYaffeeTv.com !We have the best Realtor in Sacramento that can helpyou in all your real estate needs! Visit us now! ©www.DavidYaffeeTV.com
  15. 15. How Does Inflation Affect The Industry And Realtors in Sacramento Brought To You By ©www.DavidYaffeeTV.com

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