As the housing market continues to get stronger, more and more questions regarding its long term stability increase. Will the market plummet again in 12 months, or is this a positive change for the long run? With this comes the second question of whether to keep renting or to buy. Future home owners want to take advantage of the low home prices, but fear that the prices will keep declining, resulting in a lost profit over time.
As with every life decision, there will always be pros and cons, but regarding the current market situations and buying fears, now is the time to lose the “what ifs”. Rental rates increase by 3% a year*, and with the current high demand for rental properties, they’ve been increasing faster. When deciding on any living situation, determining the cost, not the price, is the most crucial factor. With mortgage rates at a 30 year low and housing prices bottoming out, the overall expected cost of owning a home could be much less than renting. Paul Dales, the senior economist with Capital Economics recently stated: “The median rent is already up to $712 per month—well above the average monthly mortgage cost of $647…”*
We’re not saying to run out and buy any piece of real estate you can get your hands on, but if you are analyzing the cost benefit of your current living arrangements, now is as good a time as ever to consider making a home purchase as opposed to renting. Take advantage of the ideal market conditions.
Start your local home search
*KEEPINGCURRENTMATTERS.COM, Things To Consider If You Are Buying A Home, Spring 2012 Edition