Forbes.com gave the 10 best metro areas to go from renting to buying. As most people know, the first time homeowners tax credit is still available and interest rates are at historically low levels. However, Forbes states some cities stand out more than others as places to purchase your home now. In the Minneapolis area, they state "the premium to buy--the spread between what you'd spend on renting and what you'd pay each month for a mortgage--is far narrower now than its 15-year average." It is also predicted to have a price hike in roughly five years, making the value of your property go up.
Forbes details how it decided what cities were the best to go from renting to buying at this time. First, they used data collected from the US Census, National Association of Realtors, and mortgage rate information to obtain the premium in the third quarter 2009 and compared it to the average premium over the last 15 years. The cities with the biggest drops ranked highest.
Forbes also looked at areas where home buying is a smart investment so factored in the five-year forecast in the S&P/Case-Shiller Home Price Index from Moody's Economy.com. Minneapolis not only had one of the biggest discounts in premiums, but also has big projected increases in home prices over the next five years.
Job stability was also considered, so companies like Target and General Mills that are located in the Twin Cities area was a positive. Other areas mentioned were Charlotte, San Francisco, Portland and Washington DC.
Deciding to buy instead of rent is ultimately an individual choice. If you would like to talk to me about if now is a good time for you, please email me and I will answer any questions you have.