How inflation is changing consumer views on the housing market

Rising inflation is affecting both home buyers and sellers, causing most to either accelerate or slow their activity. However, slightly more than one-quarter of the combined groups stated that higher consumer goods and services prices had no impact on their plans, a Redfin survey found.

Inflation is causing 29% of the respondents to delay their purchase plans, but 24% said they were accelerating them. Only 11% of potential buyers said they cancelled their plans as a result of inflation.

Among sellers, 10% said rising inflation led them to move their activity forward, while 7% responded that it was on hold and 3% cancelled. Both buyer and seller groups, which can overlap, were asked the same question and able to choose any response that applied.

"Some people may delay buying because they're worried that with prices rising on everything from food to fuel, now is not the right time to make a huge purchase," Daryl Fairweather, Redfin's chief economist, said in a press release. "But others might move faster to find a house because they're worried home prices and rent prices will increase even more, and they want to lock in a fixed payment."

Inflation typically results in rising interest rates as the Federal Reserve looks to moderate its impact on the economy.

A separate question found that 46% of the respondents considered rising home prices to be a sign of a strong U.S. economy, while 38% said those were indicative of an unhealthy economy. The remaining 16% were neutral or said they did not know.

Rising gas and energy prices are also affecting how consumers choose a place to live. Approximately one-quarter of respondents looked to make a shorter commute to work, while 21% redirected their search to a lower priced property. But 35% were looking to drive less in general or purchase a more efficient car. However, for 27%, higher prices at the pump would not influence their home purchase decision.

But the cost to heat or cool a home impacted three-quarters of home seller and buyer plans, as 36% said they looked to add energy-saving features to their home and one-third planned to move to an energy-efficient property. Another 15% wanted to move into a smaller house. However, rising energy prices would have no effect on the buying or selling decision of 25% of those surveyed.

The survey was taken between Dec. 10 and Dec. 13 by 1,500 U.S. residents who planned to buy or sell a home in the next 12 months.