Rent vs. Buy: Survey Says.....

Thirty-three percent of Americans say they expect home prices to rise in the next 12 months, the highest level in more than a year, according to Fannie Mae’s March 2012 National Housing Survey of consumer attitudes about the housing market.

The number of people who say now is a good time to buy is also on the rise, increasing to 73 percent—also the highest level in more than a year. The percentage who said it's a good time to sell a home also increased one point to 14 percent in March.

Meanwhile, more Americans expect rental prices to rise and are projecting an increase by 4.1 percent over the next year, the highest number recorded to date.

The term “expect” is very important because consumer expectations tend to become reality.  In the meantime, I can attest that the buyers are out & buying.  Several of my listings have gone under contract in just the past week. 

Let’s look at some actual numbers:  Here in our area you can still find USDA properties in Apex, Holly Springs & Fuquay-Varina.  This type of loan requires NO down payment.  Zippo!  So, if you purchase a 3-bedroom home on land for $180,000 (totally doable) utilizing a USDA loan at 4 percent interest, with no money down; your payments would be approximately $1087/month.  Please understand that this is an approximation and several factors come into play such as your credit score, eligibility, plus I also added in mortgage insurance & taxes.  But – how does that compare to a 3-bedroom apartment or rental home in that same area? I know what rentals are charging and it is considerably higher.

Wishing & hoping & dreaming won’t get you into that home – action will.  How is your credit score?  What is your eligibility to buy a home?  Many of my clients have been delighted to learn that with just a few tweaks & actions they were able to get their credit into shape & are now home buyers.

I have several great mortgage folks who will be happy to speak with you – confidentially and at no cost.  It is painless and takes no more than a half hour.

This is your call to action!  Let me know if I can answer any questions for you.