For cautious home buyers, top concerns include when is the right time to buy or rent a Fort Lauderdale luxury home and if prices will continue to rise over the long haul. Here are four reasons why some cautions home buyers have decided to get off the sidelines and buy:
1. Save money. According to real estate aggregator Trulia, national averages reflect that owning a home is 35% less expensive than renting. When looking at 100 of the largest metropolitan areas, which included Miami/Fort Lauderdale, the home ownership savings continued even after the rise of mortgage rates from 3.75 to 4.50%.
2. Protection against rising rent. In Q3 2013, the U.S. apartment vacancy rate fell to 4.2%, the lowest level in over a decade. Meanwhile, the average rent rate rose by 3%, when comparing year over year data. With the supply of rental home options shrinking and the unemployment rate falling, experts expect rental rates to continue increasing.
3. Mortgage qualification getting easier. As mortgage interest rates rise, the lender refinancing business is expected to suffer. As a result, lenders will need to compete more rigorously for new home buyers. This competition is expected to lead to a loosening of lending restrictions.
4. Home prices are expected to continue rising. According to the Federal Housing Finance Agency, house prices across the nation rose 2% Q3 2013. If analyst predictions hold true, you can expect home prices to rise and additional 3% in 2014, thus making the optimal time to buy sooner rather than later.
If you have questions about when is the right time to buy or rent, contact us! We understand that everyone’s situation is unique and can help you make the right decision based on your circumstances and goals.
