Is Now the Time to Buy?
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 (https://www.realtor.com/research/june-2021-rent) found rents rose by 8.1% from the same time last year.
If you are a renter concerned about rising prices, now may be the time to consider purchasing a home.
Monthly rents are higher than mortgage payments
When you weigh your options of whether to buy a home or continue renting, how much you will pay each month is likely top of your mind. Currently mortgage payments are 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.
Rents are rising sharply, and they continue to increase
The difference in monthly housing costs when comparing renting and homebuying today is significant, but many would-be homebuyers wonder about the future of rental prices. The median asking rent has risen consistently since 1988. The rise in rent over time clearly shows one of the major advantages homeownership has over renting. When you purchase your home, your mortgage rate is locked in for 30 years, meaning your monthly payment stays the same over time. That gives you peace of mind and predictability for many years ahead.
With rents continuing to rise across the country, renters should consider if now is the right time to buy. Let’s discuss your options so you can make your most powerful decision!