Many people are asking the question? Does it make more sense to buy a home rather than rent one? Here are the latest facts:
According to a national real estate website’s data, it is now less expensive to own a home than to rent one in 72% of U.S. cities.
This percentage will likely increase because analysts feel rental costs are about to explode. Because foreclosures and short sales continue to saturate the market, this means an ever increasing number of individuals and families will turn to landlords and the rental market in order to find a place to call home as they rebuild their credit. In other words, as they taught you in economics, as the demand for a product goes up while that supply goes down, then prices start to skyrocket!
Even though home prices could still soften in some markets, the cost of owning a home may increase. This is because mortgages may soon get more expensive. Researchers with the Mortgage Bankers Association expect mortgage rates to rise the last three months of this year and continue to increase gradually through 2012.
For most folks, it makes utmost sense to buy a home at a discounted price and secure a 30-year mortgage at a historically low fixed interest rate. This lets you set your housing expense for the next thirty years–while rents keep heading skyward. Contact me today to schedule a showing.