Will the Raising of Interest Rates Slow Down House Price Inflation or Is Demand Too Strong?

House prices are a measure of how valuable property is. If house prices go up too quickly, it means that the property’s value is going up too quickly. It’s not suitable for individuals to own property worth more than they can afford to pay for it. This is why house prices tend to go up slowly – if you buy something that you can afford to buy, it will be worth more after you have paid for it.

The Evolution of House Prices

House prices are a measure of how valuable property is. If house prices go up too quickly, it means that the property’s value is going up too quickly. It’s not good for an individual to own property worth more than they can afford to pay for it. This is why house prices tend to go up slowly – if you buy something that you can afford to buy, it will be worth more after you have paid for it.

The Power of Interest Rates

Interest rates are the amount of money you have to pay every month to borrow money. If you’re paying too much interest, it’s a sign that house prices are going up too quickly. This is because very few people can afford to buy a property while paying back their loans. This means that the house price inflation is slowing down. If interest rates remain relatively low, house prices will continue to rise at a slow pace and vice versa.

Is it a Good Time to Purchase a Home?

If you’re looking to buy a property, it is crucial that you consider the time of year and whether it is an excellent time to purchase. If you are considering purchasing at the peak of the market, then it is important that you do this at least 2-3 years before your target date. This will ensure that you can afford your debt repayments and that your property value doesn’t increase too much from when you bought it.

It’s best to be prepared for any expenses to be paid back over time. You may well be able to find a still available property but at a large chasing price. This is what most people are doing, and it’s causing the inflation that we see, and house price is not going to slow down any time soon.

ABOUT JOSEPH MCINERNEY CHICAGO

Located in Chicago, Illinois, Joseph “Joe” McInerney is a busy and talented entrepreneur who has a long career branching out into many different industries. Since 1994, he has been the CEO of Banner Capital, a global advisory and management services firm dedicated to the business needs of private investors. He and his team serve a diverse client base, mainly consisting of single-family offices, closely-held businesses and high net worth individuals making investment decisions. Joseph McInerney has held a large number of managerial positions and has led diverse teams with a wide range of business goals.

A few industries Joe McInerney has been involved in due to Banner Capital include real estate, agriculture, film, and construction. His business direction allowed these companies to grow sales, produce high-budget projects and form effective growth strategies.

Prior to owning Banner Capital, Joe McInerney of Chicago was the President of Coleman Family Office. This investment company had primary holdings in charitable game manufacturing, jet aviation, hardwood lumber products, cooperage, livestock identification and real estate. Joseph was responsible for bank financing, litigation support, business development and more.

Prior to advancing in his career, Joseph “Joe” McInerney, Chicago local, attended the University of Illinois at Urbana-Champaign, receiving his Bachelor of Science in Accountancy. He later received his Master of Business Administration with a concentration in Finance from The University of Chicago. Joseph McInerney also holds his real estate broker license and is a certified public accountant. He has numerous training hours related to small business and real estate topics. In addition to his education, he has volunteered his time and services to a number of organizations. He has served as a board member for the Mankind Project, Make-A-Wish America and many more.