I follow Steve Harney and his blog at KCMBlog.com. Today's post summarizes perfectly what I just tried to explain to a potentail purchaser, but trust me, I wasn't so clear and concise! As usual, thank you KCMCrew!
According to Jed Kolko, Trulia’s
Chief Economist:
“People who didn’t buy a home
last year may have missed the bottom of the market, but they haven’t completely
missed the boat. Buying remains cheaper than renting in all 100 large metros.
Even buyers who can’t get today’s lowest mortgage rates will still find that
buying makes more financial sense than renting in nearly all local markets.”
However, Kolko went on to say
that this opportunity may soon disappear:
“Although buying a home is still
cheaper than renting, the gap is closing. In 2013, home prices should rise
faster than rents, and mortgage rates are likely to rise in the next year as
the economy improves. By next year, buying could be more expensive than renting
in some housing markets, even for people with the best credit.”
Again, the only way to lock-in
your monthly housing expense is to take that decision out of the hands of a
landlord by owning. With both prices and interest rates set to increase, the
best time to buy is right now.
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