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Rents Rise; Home Prices Drop. Opportunity Awaits!

July 30, 2012
Loan Officer Kristen DiCarlo

Loan Officer Kristen DiCarlo

Homeownership remains the American dream for many families, and now it’s less expensive than renting, in many parts of the U.S.!  This year alone, rents have risen 4% even as home prices continue to fall to historic lows, according to TransUnion. In 98 of the top 100 metro areas, buying is less expensive than renting.

The reasons are clear… there are more want-to-be renters due to the housing downturn, driving up prices. In addition, the most recent U.S. Census Report noted that the population in many top cities is growing faster than in the suburbs, something not seen since the 1920s. This may also be fueling an increased demand for rental units in those areas.

So, what can real estate professionals do with this information?  Share it with your clients!

Homeownership makes financial sense! Both market prices and interest rates have never been lower – literally! But even more than that, homeownership is a beneficial way to anchor both urban and suburban communities. It offers something that can’t be measured in dollars. Homeownership creates stability and pride in the neighborhood and engagement with the community. Homeowners tend to be more engaged with their governmental representatives, from the school board to their local government. In addition, according to Habitat for Humanity, an organization that builds homes for families, children of homeowners have higher test scores and fewer behavioral problems.

It would be hard to argue that there’s been more compelling reasons or a better time to buy a home, so let your clients know. If they are on the fence, your facts may be just what they need to hear to make the jump this year!
Sources: Trulia, Wall Street Journal
http://tribstar.com/real_estate_news/x1289992569/Rents-Rise-as-More-Americans-Flock-Back-Into-Cities, habitat.org

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