Aloha, Lance Owens here at KonaHomeTeam.com (LUVA llc) bringing you the latest in real estate news. Every week we partner with some of the best minds in real estate to bring you what we think is important, in today's news we talk about rental rates, we all know Hawaii is about double the national average (go to bottom for a screenshot of craigslist) so just keep that in mind when looking at calculations.
Looking ahead, 2020 is projected to be a strong year for homeownership. According to the Freddie Mac Forecast,
“We expect rates to remain low, falling to a yearly average of 3.8% in 2020.”
If you’re currently renting, 2020 may be a great time to think about making a jump into homeownership while mortgage rates are low.
As noted in the National Rent Report,
“the national rent index increased by 1.4 percent year-over-year.”
With average rents on the rise, this year-over-year increase may not sound like much, but it can add up – fast. The math on how much extra it will cost you over time surely doesn’t lie.
Here’s an example: On a $1,500 rental payment, ( you need to double that for Hawaii) an increase of 1.4% adds an additional $21 dollars per month to your payment. When multiplied by the twelve months in a year, it’s a $252 overall annual increase. The price continues to multiply when you rent year after year, as rental prices rise.
History shows how average rental prices have been increasing each year, and there doesn’t seem to be much end in sight. Here’s a look at how rents have grown since 2012 alone: (Hawaii is not represented in this graph) 
Why not lock down your monthly housing expense, and at the same time build additional net worth for you and your family? If you’re thinking about buying a home, consider the financial benefits of what homeownership can do for you, especially while the market conditions are strong and current mortgage rates are low.
BOTTOM LINE
With average rents continuing to rise, now may be a great time to stabilize your monthly payment by becoming a homeowner and locking into a low mortgage rate. Let’s get together to discuss how taking advantage of the current market conditions might work for you.
Hawaii Notes: Below I grabbed a screenshot from my local craigslist ad on rentals in the area (12/26/19), then I grabbed a screenshot of today's mortgage rates (rates are just for the loan and do not include property tax or insurance).
Think about this for a minute, easily the average rent in Kona is $2,500 a month, that means the first of every month, you sit down and send your landlord that check, you are paying a $550,000 mortgage for them, if that doesn't hit you over the head, nothing will.
Call me for a free consultation on how to get you on track to homeownership. 
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