Rent vs Buy - Waiting Until Next Year Will Cost You Even More

By
Real Estate Agent with www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 228209
https://activerain.com/droplet/5cs5

Rent vs Buy - Waiting Until Next Year Will Cost You Even More

 

Charlotte home prices have increased by 7.1% year-over-year. Over that same time period, interest rates have remained historically low, which has allowed many buyers to enter the market. Interest rates are beginning to increase ever-so slightly though.

 

 

What Does This Mean as a Charlotte Home Seller?

As a seller, you will likely be most concerned about ‘short-term price’ – where are home values headed in the course of the next six months? Will your buyer pool be reduced with an increase in interest rates? 

 

What Does This Mean as a Buyer in Charlotte?

Conversely, as a buyer, you must not be concerned about price but, rather, about the ‘long-term cost’ of the home. The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all project that mortgage interest rates will increase by this time next year.  As well, CoreLogic’s most recent Home Price Index Reporthome prices will appreciate by 5.2% over the next year.

 

With home prices appreciating 5.2% over the next year, here is a sample of the impact that an increase in interest rate would have on the mortgage payment of a home selling for approximately $250,000 today: 

Buy vs. rent in Charlotte NC

 

Making the right decision with regards to timing is not always easy but, following the trends in our local markets, you'll find that the numbers speak for themselves. If you're thinking of buying a home in Charlotte, let's talk!

 


 

BUYERS

Visit www.TheMaxwellHouseGroup.com for more information and to search for homes in the Charlotte Metro region. Your first step should be enlisting an experienced, local real estate broker. Selecting a great broker is not as easy as it may seem. There are real estate agents and brokers who will sell you anything but, you want to enlist a seasoned real estate professional for your real estate needs. We would love to share our knowledge of the Charlotte area with you...and give you the grand tour too! 

Hiring the RIGHT Charlotte Realtor® is critical to your home buying success!

 

SELLERS  

If you're thinking of selling your Charlotte area home, let's talk! As with everything in life, preparation is key and I will equip you with what you'll need to get you, as seamlessly as possible, through the home-selling process. Call or text (704) 491-3310   

 

*References from any of our sellers are available upon request.  Read our reviews www.CharlotteRealEstateAgentReviews.com

 

Hiring the RIGHT Charlotte Realtor® is critical to your home selling success too!

 

© Debe Maxwell | The Maxwell House Group | CharlotteBroker@icloud.com |Rent vs Buy - Waiting Until Next Year Will Cost You Even More

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Gabe Sanders 05/22/2018 11:00 PM
Topic:
Real Estate Market Trends
Location:
North Carolina Mecklenburg County Charlotte
Groups:
North Carolina Real Estate
Charlotte North Carolina Area
Buyer Information - What Buyers Need to Know in Today's Market
Advice for Sellers
Hyper-Local
Tags:
rent vs buy
charlotte home seller tips
charlotte home buyer tips

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Rainmaker
3,526,509
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.346.1799 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good morning Debe Maxwell, CRS ,

The gold star will soon follow on this post! Those who want to sit on the fence from buying are going to pay the price. You can't lead a horse to water for some of them!

May 15, 2018 04:19 AM #5
Rainmaker
2,773,289
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Debe. If you can afford it now, buy it now. Opportunity diminshes with time. Enjoy your day!

May 15, 2018 04:42 AM #6
Rainmaker
4,421,341
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Good morning Debe.  For many, the added costs of rising prices and interest rates the dream of homeownership may become considerably more difficult if not impossible the longer they wait.

May 15, 2018 04:56 AM #7
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Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

LOL We have been joking about the daily 'shrinkage' as well, Endre Barath, Jr. It's really nothing to laugh about though - it's time for these folks to just bite the bullet and get off of the fence, for sure!

May 15, 2018 06:26 AM #8
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Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

That's a great way to put it - in this market, it is expensive, Sally K. & David L. Hanson!

May 15, 2018 06:26 AM #9
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Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

I don't think that's going to happen anytime soon because the inventory continues heading south and it's going to take quite a bit of time to move from such a basement sellers position to a buyers market, James Dray.

May 15, 2018 06:28 AM #10
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Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

It absolutely will, William Feela - it's certainly best to do this NOW, rather than wait!

May 15, 2018 06:28 AM #11
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Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

They will and at 7.1% on a $500K home, we're talking nearly $30K in a year...that's HUGE! I have been telling folks to think of it like this - $30K for a decent rental is money down the drain. Not to mention, you're LOSING that $30K in equity so, you're really doubling-down if you stay on the fence for a year, Dorie Dillard!

May 15, 2018 06:31 AM #12
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Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

I think some are hearing that we're in a bubble market and are afraid that values are going to do what they did in 2008. For several reasons, it's just not going to happen, Wayne Martin.

May 15, 2018 06:32 AM #13
Ambassador
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Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Thankfully we haven't seen any limitations for buyers just yet in our market - at least for now, Gabe Sanders!

May 15, 2018 06:37 AM #14
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Debe interest rates are increasing, which means buying power is decreasing.  Anyone who wants to purchase a home would be wise to do it sooner than later.

May 15, 2018 11:58 AM #15
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Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Yes and with gas prices increasing, as well as other cost of living items across the board, I wonder how soon we'll be stabalizing, George Souto?

May 15, 2018 01:07 PM #16
Rainmaker
4,755,614
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Prospective home buyers will be in very good hands when they use your professional real estate services.

May 17, 2018 03:49 AM #17
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Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Thank you, Roy Kelley! Perhaps one day you and Dolores will see for yourselves!

May 17, 2018 06:20 AM #18
Ambassador
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Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

And, another graphic that clearly demonstrates that it is better to buy vs. rent:

Rent vs Buy in Charlotte NC

May 19, 2018 03:40 PM #19
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Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Rent vs. Buy - the trend of higher rental rates compared to the cost of renting has been in place for years.

May 20, 2018 08:52 AM #20
Rainmaker
1,500,187
Sybil Campbell
Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia - Williamsburg, VA
REALTOR® ABR, SFR, SRES Williamsburg, Virginia

Debe, thanks for this awesome post. So many people don't realize the benefits and savings associated with owning a home versus renting one.

May 23, 2018 08:08 PM #21
Rainmaker
1,044,070
Carol Williams
U.S.: I specialize in helping agents who have been in the business 2 years or less create a thriving business. - Wenatchee, WA
"Customized Mentoring & Marketing Services"

Hi Debe,
Excellent post.  Surprised this never received the Gold Star.  Unless renting is the only option (for whatever reason), with rising prices and interest rates it doesn't make sense to wait any longer.  

May 28, 2018 10:14 AM #22
Rainmaker
1,395,050
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Good morning Debe Maxwell, CRS, this is a message that needs to go out to masses. Just this week alone, I met two different families, both from other states moving to FL. When I first talked to them, they wanted to rent, both families are under contract now, they realized it would've cost them more to rent. 

Jun 02, 2018 06:53 AM #23
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Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

Hi Debe

The data are compelling and easy to understand. Add to that the potential price increase and buying power really shifts. And when you look at the rental costs for similar properties, that really sends the BUY message home.

Jeff

Jun 02, 2018 05:36 PM #24
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