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Why Real Estate is the Answer to Inflation

CE Credits: 3.5 WednesdayOctober 12, 20221:00 pm - 4:30 pm

This is a livestream class – your link will be sent out the day before the class.

It is hard to think of a topic that has become more important in recent times than inflation. The news has stories on it every day, it seems like the Federal Reserve is very concerned with it, and they tell us that is why groceries (and everything else!) cost us more every time we go to the store.

Inflation affects all things bought with money, and that includes real estate. When inflation hits, the value of real estate generally increases, but why? Real estate is known as a hedge against inflation and for that reason, when money begins to become less valuable at an accelerated rate, real estate becomes a more desirable means of protecting money. For this reason, people become reluctant to sell and rates of return that investors will accept fall, making investment properties’ prices rise as well.

As a real estate professional it should not be enough to simply know what is happening. Real estate professionals need to know why and should know the historical context in order to help customers predict what is going to happen. This knowledge also helps to project the overall value of the real estate being sold to them. Understanding your product, but also the things in the market that affect your product and your customer, is what sets you apart as a knowledgeable and trusted agent.

Learning Objectives
At the end of this course, the student will be able to:
1. Describe to the customer how current inflation will impact their selling price or the asking price of a home they want to purchase.
2. Describe the overall impact on real estate and how rental prices are affected.
3. Explain the performance of real estate over the long-term.
4. Explain how inflation impacts home interest rates.
5. State why the ability to explain inflation succinctly can impact your real estate business.
6. Explain how inflation is connected to the number of homes for sale.
7. Explain Net Gain and the benefit of inflation to a homeowner.
8. Calculate Equity Growth to see if upgrading a home makes sense for the customer.
9. Calculate Future Value based on current interest rate.
10. Calculate the return from an investor’s perspective when in an inflationary market.
11. Calculate ‘Actual Buying Power’ and explain to a customer what that means for them.
12. Calculate ‘Internal Rate of Return’ and explain to an investor that that means.


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Joshua Cadillac

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