Continuous inflation hits real estate market

CAPE GIRARDEAU, Mo. (KBSI)- When it comes to supply and demand and the increase of inflation, the housing market is one of the top areas affected..

“Everything has gone up and that makes a family’s budget tighter. Which makes it harder for them to get into that housing market,” said Brenda Clary of U.S. Bank.

Inflation has been hurting consumers for more than a year, with the collective cost of living continuing to go in the wrong direction.

Savings accounts are depleting, diversified portfolios are down 10-plus percent, and credit cards are being utilized – and maxed out – even more.

In the attempt to slow inflation, the consumer price index indicates the Federal Reserve has been raising interest rates in an attempt to slow down the pace of inflation.

“We do have the high rates right now, which are causing people to kind of hold off on wanting to buy. I don’t know if the rates are really going to drop any time soon. Even if the rates do drop, you’ll still have the value out there because the demand is so high,” said Heather Harrison of First Midwest Bank.

According to Redfin.com, for the Missouri housing market, Cape Girardeau comes in at number one for the top ten fastest growing sales prices at 49.7%.

“Interest rates have gone up comparable to last year at this time; they’re well over double what they were at this, as of today, were as interest rates fluctuate all the time,” added Clary.

The average price of a home in Cape Girardeau was $235,000 last month.

The average sale price per square foot in Cape Girardeau is $102, an increase of 20% since last year.

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