Americans have weathered the rough real estate market of the last few years by staying out of the market, and renting an apartment. It may be time to reconsider that plan, as apartment rental rates are now rising at a higher rate than home values.
The Trulia Pro Blog is reporting that while housing prices have increased slightly, “…rents have risen faster, at 5.4% year over year. In 22 of the 25 largest rental markets, rents are outpacing prices. This means that buying a home is becoming an even better deal relative to renting – that is, for those who can qualify for a mortgage and put up the down payment.”
Trulia reports that each metropolitan housing market is recovering at its own rate. The stronger, more stable real estate markets are in localities where unemployment rates are decreasing.
Other optimistic real estate news indicates that fewer banks are tightening underwriting standards, notes a recent Housingwire.com article. “This year’s survey showed the continued normal progression toward stable or easing underwriting standards as the economic environment stabilizes,” said John Lyons, chief national bank examiner at the Office of the Comptroller of the Currency.
The decision of whether to rent or buy involves many factors. The entitled,“Is It Better to Buy or Rent?” says the three primary factors for determining whether to rent or buy, are as follows:
- Existing home prices in your area
- Apartment rental rates
- How long you plan to stay in your home
With today’s record low interest rates a monthly house payment is less then most monthly rental payments. Not to mention the tax benefits you get as apposed to someone else getting the benefit of your hard earned money. Please remember to visit Maronda.com to see our beautiful home designs and model hours.