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Real Estate Marketing Insider issued some observations about the report that buying a home is cheaper than living in a rental property today, and its opinion is that this will help home sellers because this information can be incorporated into marketing strategies for real estate that encourage property sales.
Forbes has published a report from the chief economist for Trulia.com, who claims that currently, owning a home is cheaper than renting. To support this claim, he looks at several different factors. First, he looks at the difference between the recent 2.3% rise in home prices versus the rise in rents, which at 4.7%, has been higher. Next, he combines this information with the fact the mortgage rates are quite low right now, which means that in the 100 largest metropolitan areas in the United States, the average homeowner can save 45% over renting. Of course, this optimistic news is tempered by the current strict standards for obtaining a mortgage and the dearth of properties on the market. These numbers are also an average and in some areas, such as Detroit, buying is 70% less expensive than renting, but in stronger markets like Honolulu, the difference is much smaller, making renting a more viable alternative.
Trulia.com is a website that is designed to work with the MLS system in order to provide detailed information about properties. This information about a single property is supplemented with information about local schools, crime statistics, and information about commute time. This website was launched in 2006, towards the end of the housing bubble, but has managed to thrive even when the housing market collapsed and has struggled since.
Detroit has had a weak and suffering economy for decades and was also hit very hard in the 2008 financial meltdown. Because of this, real estate prices suffered far more in Detroit than they did in other areas. Recently, however, the American auto industry has begun to recover and other companies have built facilities in the Detroit area, which is creating more jobs and help to alleviate properties. Some areas are starting to recover in terms of real estate, but there are many foreclosed properties in the area.
Honolulu is the capital of the state of Hawaii and is the largest city in the Hawaiian Islands. Because it is on an island with real estate at a premium, there are many skyscrapers in Honolulu, including residential high rises. This means that there are many different rental properties available in the area, but private homes are rarer.
Real Estate Marketing Insider today commented on argument that buying a home is much cheaper than renting in today’s economic climate.
Marketing, Blogging and Real Estate Solutions, Lynn's Active Rain Blog, Lynn Ganster has 10 years of experience in the real estate industry as a licensed Realtor. Lynn consults with buyers and sellers regarding the market, pricing and market trends as they are occuring. Top Producer, E-signature, Technology driven, virtual assistants virtual tours, flip videos, real estate photography.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.