Is It Time to Make the Leap?
The renting versus homeownership debate will continue as long as housing is a requirement. However, as rents increase steadily across the nation, perhaps it is time for renters to take a more serious look at purchasing the American dream.
As reported by the Associated Press in the article US Rental Prices Rise at Slower Pace in August, while rental prices rose at a slower pace when compared to a year ago, rents are still climbing at a faster pace than average earnings. According to the same article, rental housing costs have been rising nationwide at roughly double wage growth. The result is an affordability crunch for renters.
The current market suggests that today is a new dawn for homeownership as there are numerous long-term and immediate benefits for former renters to take advantage of. Home prices are rising in most markets, and historically, home values typically enjoy modest gains. Yearly home appreciation is a benefit that renters will never experience. Real estate tax exemptions and deductibles that come along with homeownership are helpful, as is the ability to borrow against equity for home improvement projects and other major expenses, such as education.
Right now is an optimal time to take the leap from renting to homeownership. While home affordability has improved in most markets and mortgage rates are still historically very low, prices are rising and the threat of higher mortgage rates looms over the horizon.
For those making the most significant financial commitment and investment of their lives, moving from renter to owner can be intimidating, but it doesn’t have to be. A real estate professional affiliated with Coldwell Banker Residential Brokerage can provide data on local home prices and sales, like the charts provided here, and help you analyze the statistics and determine how they affect you. They can also guide you as you search for a home and neighborhood that best suits your needs.
To discover if buying a home is a viable option for you, contact a Coldwell Banker Residential Brokerage sales professional who will assist you as you weigh your options. Taking the leap from renting to homeownership can be a tough decision. The guidance and proficiency of a real estate expert can make it much easier.