If you have considered buying your own home now may just be the time to make that happen! If you’re a renter concerned about rising prices, now may be the time to consider purchasing a home. Yes, even with the price of homes continuing to escalate you can still come out ahead. There are a few key things to consider in this important decision.
Home mortgage cost versus rent
According to recent data from Realtor.com®, median rental prices have reached their highest point ever recorded in many areas across the country. The report found rents rose by 8.1% from the same time last year. As it notes: “Beyond simply recovering to pre-pandemic levels, rents across the country are surging. Typically, rents fluctuate less than 1% from month to month. In May and June, rents increased by 3.0% and 3.2% from each month to the next.” The “Eviction Moratorium” has hit many investors hard, and they are now recovering by escalating the rents wherever they can and by as much as they can get away with in the market.
Monthly rents are now surging higher than monthly mortgage payments when you weigh your options of whether to buy a home or continue renting, how much you’ll pay each month is likely at the top of the list.
According to the National Association of Realtors® (NAR®), monthly mortgage payments are rising, but they’re still significantly lower than the typical rental payment. NAR indicates the latest data on homes closed shows the median monthly mortgage payment is $1,204.
By contrast, the median national rent is $1,575 according to the most current data provided by Realtor.com. In other words, buyers who recently purchased a home locked in a monthly payment that is, on average, $371 lower than what renters pay today. The graph above depicts how sharply the median rent has been increasing.
Don’t let credit hold you back
Check our blog titled What Credit Score Is Needed To Buy A House and discover many of the ways that you can get into a home, in some cases with very little down payment. Don’t let cash hold you back; if you have a good job and your credit is good there is a good chance you can be a homeowner and not a renter.
Finally, waiting for the market to flatten out or for things to turnaround will likely disappoint because all indications are that everything is escalating, and nothing will get cheaper as you wait. We have many ways to help first time home buyers as well as buyers with difficult credit and low cash. Don’t be discouraged – let us help – our preferred lenders work miracles every day!
In the following video, Denise Donoghue, Loan Officer, Certified Mortgage Planner, and one of our preferred mortgage lenders, provides a discussion on the “cost of waiting” to purchase a home.
If you are considering buying keep in mind what Denise says in her video above – nothing gets cheaper with time – so now may be the perfect time to sell and move up or move out of your lease and into your own home. My book, that you can obtain for FREE, provides a lot of helpful information and advice on the home selling and buying process!
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Geni is a native Texan and has spent her life in the Dallas/Fort Worth Metroplex. She has served North Texans for nearly four decades providing expert advice and real solutions to their real estate goals. She is an author, speaker and trainer with an impeccable reputation for integrity and determination. Geni’s personal contacts reach across literally thousands of the top brokers and agents throughout the nation, affording her a unique ability to help you with your relocation needs, Geni and her Team know how to SELL, what works and what doesn’t! She has a proven track record of selling homes faster and for a higher price than most agents, even in the most difficult markets! You can be assured of the most professional and successful marketing strategy for sellers, and a thorough knowledge of the area for buyers. Geni’s credentials include earning 12 highly recognized designations and 100s of Five Star Reviews, which is why Geni is known as a Master of Residential Real Estate.
This article is under Copyright © June 2021 Geni Manning, Geni Manning Real Estate Group, Frisco Stars, Frisco, TX.
Our KW Mobile App connects you to the MLS and allows a buyer to search and sort homes by price, location and much, much more. Once a property is found simply save it properties and the app will notify me of your choices. This allows me to place your home on the list and follow up with you and the listing agent.
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