Post-Pandemic Spending: Be Careful of Temporary Increases and Economy Inflation
I think we can all agree that real estate prices just about everywhere are feeling a little, well, insane. This is just one area where economy inflation is rearing its head – gas, groceries, and many other everyday items are creeping higher.
As we emerge from the pandemic there are a few big-ticket items that you might want to re-consider as supply and demand settle down.
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Car manufacturing hit the skids during the pandemic. Combined with a shortage of microchips, there is now limited inventory at dealerships everywhere.
Despite what you might think, consumer demand for vehicles has remained steady and even increased throughout the pandemic. If you can hold out 6 months to a year, prices should settle back down to normal levels.
This one should be no shocker.
We’ve all essentially been locked in our homes for over a year. What do you think the reaction would be once we can all travel again?
Airfares are up 9% here in the US since April 1st. This is only increasing as demand continues to go up. In some popular areas, hotel prices have even surpassed pre-pandemic levels.
It’s going to be competitive out there so prepare to join the masses at the airport or wait it out for a bit longer.
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Also a no-brainer.
Spend enough time in your home and you’ll find things you don’t love about it. Home renovations are at an all-time high and so are the costs associated with them.
Supply chain slowdowns have caused pretty much all raw material prices to skyrocket, from lumber to steel to copper.
There has always been a shortage of skilled labor in the trades as well, which only increases costs to the end consumer. Will homeowners see an end to this economy inflation anytime soon? Not anytime soon. So spend wisely.
Wait it Out
Experts believe these price increases are temporary and consumers should think hard about big purchases. It might be tempting to go all out as the economy re-opens, but you’ve lived this long without that new car or master bathroom….what’s another year?
Your best solution if you’re buying a home in the middle of economy inflation? Get a home inspection. We’ll make sure you’re getting the best bang for your buck so you won’t have to shell out more than is necessary.
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