With rising rents, fallen home prices and still historically low interest rates- is now a good time to buy a house?
In the US it has always been more attractive to own a home over renting. However, in the last few years for many renting was a must. After the housing crash some people weren’t able to buy a house or weren’t ready to become homeowners again– at least not right away. They would rather rent until they feel comfortable again investing into the housing market. Landlords have been able to really relish in the housing decline. We have seen rents rapidly increase. Rising rents can sometimes make a mortgage payment look good again. Especially when you consider the mortgage interest tax deduction. Although, having a landlord just a phone call away to fix that leaky sink or replace the never ending running toilet often times keep renters from making the home ownership plunge.
2007 marked the beginning of drastically dropping real estate in our areas. In the past year we have seen those home prices finally start to increase again. The Phoenix, AZ market saw large swings in home prices. We are now hearing that the inventory has leveled out and we should see an equal playing field for both buyers and sellers.
Rates are still low. Can you afford to miss the boat on that lower rate? Yes, we have seen a small increase in interest rates, however historically they are still very low. According to market reports, housing experts expect rates to creep up in 2014. Will the same home that you are interested in now be within your buying power if rates rise a point or two?
Making the decision to purchase a home is a big one and requires a lot of thought. Only you will know when you are really ready to dive into home ownership. When you do, always remember to call a PRO! Barry Home Pro.