With low interest rates, falling home prices, and rising rents, owning a home is a more attractive proposition than renting in many, perhaps even most U.S.cities. It’s more affordable to buy a house today than it has been in ages. In fact the National Association of Realtors says houses were more affordable in 2012 than they had ever been since the group began tracking the data in 1970. Today’s high affordability combines two factors; low prices and low interest rates. This could be a once-in-a-generation opportunity to buy real estate.
The National Association of Realtors expects rents to increase almost 4% in 2012 and another 4% in 2013. While rising rents might be a downer for apartment hunters, it can translate into a bright spot when it comes to home sales. Higher rents tend to push certain renters into considering home ownership when the financial benefits of owning outweigh the flexibility of renting.
To find out if becoming a “homeowner” is right for you, call one of our real estate professionals at Palm Tree Realty, LLC.