For the reasons stated below, this type of large scale geopolitical event could help to push the scale ever so slightly toward some semblance of balance in the real estate market. In a normal market, high inflation almost always leads to higher interest rates, which would strain the affordability of housing on a real estate market that has already priced out a certain portion of buyers. This recent volatility can work in both directions relative to the real estate market. These buyers may take a wait and see approach with their prospective purchases, which again removes one layer of demand in the local real estate market. The longevity and depth of the conflict in Ukraine will dictate the severity of the economic influences that we experience in the Southwest Florida real estate market.

Source: The Herald March 06, 2022 18:11 UTC