Buying - 44% Cheaper than Renting According to Study

Trulia study shows that buying a home is in the average of 44% cheaper as suppose to renting in the 100 largest Metros in the US.    In 2012, buying a home was 46% cheaper than renting.   According to Freddie Mac, from February of 2012 to February 2013, the 30-year fixed rate dropped from 3.9% to 3.5% though rates have been increasing in March. 

Mortgage rates are still at historic lows.  Purchasing your own home would be 44% cheaper than renting at 3.5% mortgage, while buying at 4.5% mortgage rate will only be 39% cheaper than renting and only 33% cheaper at 5.5%. Low mortgage rates are helping to keep buying more affordable for home buyers.  Higher interest rates mean a higher cost of owning.  Experts believe that mortgage rates are NOW at its lowest.  So if you're thinking of buying your new home - NOW is the best time to move!

 Buyers are willing to buy. But where are homes for sale?  Potential sellers are eyeing the home prices   very carefully.  They're playing the waiting game. They want to see how high can a home appreciate before they consider selling their home. But  some experts say that they are missing out on huge sale opportunity by doing so.

Daren Blomquist, Vice President of Realty Trac says that home owners that bought their home 2-3 years ago may find that in  2013 is the perfect time to sell.  

"If you're selling one house just to move up to another, it does you no good to wait for prices to rise - the price of the move-up home will increase faster than the price of the place you're leaving behind." says Redfin CEO Glenn Kelman.  In addition to that, Mortgage Bankers Association predicted that mortgage rates are expected to increase from 3.5% range to 4.5% in the next year.  This means that the increase in mortgage rate will increase the costs of financing for your next home. 

Both scenarios indicate that NOW is the best time to buy or sell your home - before it gets too expensive.  So, my advice is to move in the market now, before prices go up.  If you're planning to buy or sell your home, I can help.  Just give me a call or visit my website at www.jamesteamrealestate.com