Picture this: A married couple relocates to North Carolina. They aren’t sure if they should rent a townhome or purchase a home with a yard. They would be first time home buyers. Renting is their best option. True or False?
Now this food for thought: In Orange County, June 2014 saw 208 new listings of homes while June 2015 saw a 26% increase with 262 new listings to hit the market! Closed sales increased 11.4% after going from 210 to 234. In Durham County, new listings went up 5.5% while closed sales went up 18%! Even Hillsborough saw a 12.8% increase in closed sales!
According to Zillow.com, the most recent market report shows that paying rent for most residential homes in the US are growing at an alarming fast pace. In April, rent payments outpaced home values in 20 out of the 35 of the largest housing markets. So in many areas couples, like in the above mentioned scenario, are finding themselves paying more in rent each month than what they could expect from a home mortgage. The proof is in the numbers and, without a doubt, the answer to above question is false.
With monthly cost aside, it is important to pay attention to interest rates and the market itself. The Hillsborough area, From June 2014 to June 2015, saw a total of 18.6% increase in average sale prices on homes. Combine that with the expected increase of interest rates to grow from 4% to 5%.
We recommend sitting down and weighing your pros and cons. It is safe to assume that with listing prices and interest rates growing, now truly is the best time to buy versus rent. We would be very happy to speak with you and answer any questions you may have about taking the first steps towards buying a home.
Comments(0)