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Inflation rising: what does this mean for you?

Published July 5, 2022

The real estate market may be cooling off, but inflation actually increased to 8.6% in May and the consumer price index (CPI) jumped one whole point. Although the Federal Reserve can’t control supply, they can influence demand. The good news is banks still need to lend money, people still need to sell, real estate professionals still need to complete transactions, and the world still turns.

All of this is music to our ears. It’s easy to forget that higher interest rates don’t just apply to you, but every buyer. This is the time to get creative with how your deal is structured, as current list prices typically don’t justify conventional commercial loans.

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