With inflation reaching its highest level in nearly 40 years, three-quarters of buyers and sellers say they are changing their plans, according to a new Redfin consumer survey of 1,500 emerging buyers and sellers.

29% of respondents said they delay home buying due to inflation. On the other hand, according to the survey, around a quarter of potential buyers say they are being inflated by speeding up their property purchase plans. 10% of respondents say that inflation is increasing their home sales plans, 7% are delaying sales and 3% are against selling.

“The way Americans interpret the news of rising prices could have some implications for their financial decisions, including home purchases,” said Daryl Fairweather, chief economist at Redfin. “Some people may delay their purchase because they fear that the high price of anything from groceries to rising fuel prices may not be good now. Others may find it easier to find an apartment because they fear that prices of houses and rents will continue to rise and they want to freeze a fixed payment.

Consumer price inflation increased 6.8% yoy in November. Consumers are seeing higher prices for food, gasoline, energy, and more.

73% of respondents said higher gasoline prices influence their decisions to buy a home that would require longer trips to work. Additionally, 21% say they want to buy a cheaper home due to inflation.

Rising energy costs for homes also affect real estate decisions. 36% of respondents said they bring energy-saving features into their homes. According to the survey, 33% are planning to move to a low-energy home and 15% are planning to move to a smaller home.

Translate »