Why it makes more sense to buy!
Turns out California isn’t the only expensive place to live. Rent is rising all over the country and it only makes the argument to buy more coherent. Why wait to buy when the price of living as a renter is only going to keep rising? According to Jed Kolko, the chief economist for Trulia, “Buying a home is more affordable than renting now in almost every part of the United States”. To help support my argument I found a great article by Les Christie with CNN Money titled “Rents Keep Rising as Home Prices Stagnate”.
Over the past year the housing market has experienced a lot of change! The asking prices for homes have declined .7% while rent has risen 5% according to Trulia. A 5% increase in anything is quite a bit, but when it’s your rent that’s increasing why NOT buy a home?
In many other states you can sometimes find a decent home to rent for about a thousand dollars, maybe a little over like $1100. However now the median price of all types of rental homes has hit $1350 per month when it was $1285 this time last year.
“Several metro areas recorded double digit percentage increases in rental rates.” Here are some of the top changes:
Sarasota, FL - 12.9% Increase
Miami, FL – 12.1% Increase
San Francisco, CA – 11.1% Increase
Middlesex County, MA – 10.6% Increase
Edison, NJ – 10.5% Increase
So what does this tell us? It honestly depends on from where you’re looking. If you’re a seller in the market, it could be very good news that your home will be bought up because it’s affordable to buy NOW. If you’re a real estate agent this could mean you have your work cut out for you in getting people into the right home while the demand is high and the inventory is low. If you’re a renter this could mean it’s time to apply for a home loan and start paying off your home Now.
Rent is astronomical in California and it will continue to rise here in the bay area making purchasing a home the logical choice.
For all your real estate questions and advice come to us at Sun Pacific Mortgage and Real Estate. We’ve been in business since 1988 and know the real estate business inside and out. If it’s the perfect time for you to buy or you’ve been biding your time on the side lines give us a call and we’ll give you a consultation.
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Lynn Tardibuono – Flipper Chick- Real Estate Agent and Co-Owner of Sun Pacific Mortgage and Real Estate. Serving Sonoma County since 1988. Her number is (707)523-2099 and you can also visit our redesigned website at http://www.sunpacmortgage.com Also be sure to like us on facebook! Click this link .