Buying Is Now 33.1% Cheaper Than Renting in the USThe results of the latest Rent vs. Buy Report from Trulia show that homeownership remains cheaper than renting with a
Inman News Reports An Increase Over 7 Percent In Phoenix Rents
Inman news reports 7.2% increase in rents in the Phoenix area
In the last 12 months, new rental agreements in the Phoenix area have increased by an average of 7.2%. As tenants reach the end of their current leases, this is becoming a harsh reality as increasing rents and increasing demand for rental housing have converged to make ours a hot rental market. So what is a renter to do? Many renters are starting to look at the real estate resale market, interest rates, and potential mortgage payments and comparing them to the higher rent they would face when they sign a new lease… this leads them to an important question.
Is it time to buy?
I am hearing that question, should I try to buy a home, from renters a lot recently. And here is my answer, with the exception of the real estate “boom” years of 2005-2007, Phoenix has traditionally been a place where it is more affordable to buy than rent. The home you can get for $1200/month mortgage payment is far superior to the home you can rent for $1200 a month.
Can I qualify?
That question is a common one. Renters need to start planning a few months ahead of the end of their lease. Talk to a lender, see if there is anything on your credit that will impact your ability to purchase a home. Doing it sooner rather than later will give you time to get your ducks in a row, build your savings for your down payment, and start looking without the looming deadline of a move-out date hanging over your head.
Will Rents go down?
Based on the Inman article and the market, I would say don’t expect rents to drop anytime soon. If you have any questions about buying a home or would like to get started with the process. Get in touch with me at 623-826-2943.
The Bole Group
RE/MAX Preferred Choice