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      Blog :: 10-2015

      Buying a Home Remains 35% Less Expensive than Renting

      Buying a Home Remains 35% Less Expensive than Renting! | Keeping Current Matters

       

      In the latest Rent vs. Buy Report from Trulia they explained that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage throughout the 100 largest metro areas in the United States.

      The updated numbers actually show that the range is from an average of 16% in Honolulu (HI), all the way to 55% in Sarasota (FL), and 35% Nationwide!

      The other interesting findings in the report include:

      • Interest rates have remained low and even though home prices have appreciated around the country, they haven't greatly outpaced rental appreciation. "In the past year, these two trends have made homeownership even more affordable compared with renting."
      • Some markets might tip in favor of renting if home prices increase at a greater rate than rents and if - as most economists expect - mortgage rates rise, due to the strengthening economy.
      • Nationally, rates would have to rise to 10.6% for renting to be cheaper than buying - and rates haven't been that high since 1989.  

      Bottom Line

      Buying a home makes sense socially and financially. Rents are predicted to increase sustantially in the next year, lock in your housing cost with a mortgage payment now.

      4 Reasons to Buy BEFORE the Winter

      4 Reasons to Buy BEFORE Winter Hits | Keeping Current Matters

      Upcoming holidays, family get-togethers, and planning for a new year. Those who are on the fence about whether now is the right time to buy don't have to look much farther to find four great reasons to consider buying a home now, instead of waiting.

      1. Prices Will Continue to Rise

      The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report released recently projects appreciation in home values over the next five years to be between 10.5% (most pessimistic) and 25.5% (most optimistic).

      The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.

      2. Mortgage Interest Rates Are Projected to Increase

      Although Freddie Mac's Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have softened recently, most experts predict that they will begin to rise later this year. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are in unison projecting that rates will be up almost a full percentage point by the end of next year.

      An increase in rates will impact YOUR monthly mortgage payment. Your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.

      3. Either Way You are Paying a Mortgage

      As a recent paper from the Joint Center for Housing Studies at Harvard University explains:

      "Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That's yet another reason owning often does--as Americans intuit--end up making more financial sense than renting."

      4. It's Time to Move On with Your Life

      The 'cost' of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.

      But, what if they weren't? Would you wait?

      Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe it is time to buy.

      Bottom Line

      If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

      #1 Reason to List Your House Today

      #1 Reason to List Your House Today! | Keeping Current Matters

      If you are debating listing your house for sale this year or even early next year, here is the #1 reason not to wait!

      Buyer Demand Continues to Outpace the Supply of Homes For Sale

      According to the National Association of REALTORS’ (NAR) Foot Traffic report, there are more buyers out in the market right now than at any other time in the past three years.

      The graph below shows the significant increase in foot traffic experienced this year compared to 2014.

      Foot Traffic Year-Over-Year | Keeping Current Matters

      The latest Existing Home Sales report shows that there is currently a 5.2-month supply of homes for sale. This remains lower than the 6-month supply necessary for a normal market and well below August 2014 numbers.

      The chart below details the year-over-year inventory shortages experienced so far in 2015:

      Inventory Supply | Keeping Current Matters

      Bottom Line

      Meet with us so that we can show you the supply conditions in your neighborhood and assist you in gaining access to the buyers who are ready, willing and able to buy today!

       

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      Renters: It's About to Get a Lot Worse

      Renters: It is about to Get A Lot Worse | Keeping Current Matters

      We often promote homeownership over renting when a family is ready, willing and able to purchase. There are both financial and non-financial benefits to owning a home of your own. Based on the headlines below, many news outlets agreed with us after they reviewed a recent report from the Harvard Joint Center for Housing Studies andEnterprise Community Partners.

      The study states that the number of households spending 50% or more of their income on rent is expected to rise by over ten percent in the next decade. They concluded:

      "Overall, this white paper projects a fairly bleak picture of severe renter burdens across the US for the coming decade."

      What do other experts think of the report? You can tell by the headlines they chose to introduce their stories:

      "Renters, get ready to take it on the chin" - CNBC

      "The Rent Crisis Is About to Get a Lot Worse" - Bloomberg Business

      "Renters Will Continue to Struggle for the Next Decade" - World Street Journal

      "Why the renting crisis could be about to get a lot worse" - Fortune Magazine

      "Soaring rents are a problem that will only get worse" - Business Insider

      "High rents are here to stay" - The Real Deal

      Bottom Line

      If you are thinking about buying a home and are financially positioned to do so, now may be better than later.

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