Beginning this fall and throughout 2015, there are a few things Dallas-area consumers should brace yourself for in terms of “sticker shock.” In order to budget properly and avoid finding yourself in a financial bind, we’ve included the five expenses you can expect to see go up soon.
Clothing. The economy has been in recovery mode for some time, but when it comes to clothing, supplies are tight while demand is going up. Cotton prices have risen substantially, and will continue to rise because of weather-related crop destruction. How to cope? Swap clothes with friends, sell your used clothes for a little extra money to buy new, or shop consignment shops.
Grocery staples. From milk and butter to bacon and oranges, the basics most of us buy frequently are still going up. Who would have thought a year ago that they may be able to buy a gallon of gas at a cheaper price than a gallon of milk? The solution? Clip coupons, consider turkey alternatives to real bacon, try cheaper brands or even generic store labels.
Homes. Both home prices and mortgage rates are on the rise, so if you’re considering the purchasing in the Flower Mound real estate market, you would be wise to take action now rather than later. Mortgage rates are still just under 4%, but are expected to climb to about 5% by the end of next year. While it may not seem like much, your purchasing power is lowered by 11% when the rate increases just 1% – this is huge!
Electricity rates and airfares are expected to rise as well, so budget accordingly to avoid any unwanted financial issues.
At Team Nelson, we want to keep consumers apprised of the latest news affecting potential home buyers in the Dallas-Ft. Worth metro area. If you’re looking to purchase a home, the time to move is now! Contact our Flower Mound realtors today.