On one hand, with low mortgage rates and many homes on the market, renters have good reason to look into home ownership. Today’s historically low interest rates can create a financial advantage for buying over renting. Factoring in tax savings and long term appreciation, home ownership can make a significantly positive impact for the right buyer, without the negative impact of a large mortgage payment.
The President of the National Association of Realtors, President Ron Phipps, explains that many renters are considering home ownership to hedge against inflation. “The typical buyer today plans to stay in a home for 10 years, while rents are projected to rise at faster rates over the next few years,” he said. “As buyers gain more financial security, the advantages of home ownership become more obvious. Rents will continue to trend up, especially in comparison with a fixed-rate loan which provides financial stability and gradual accumulation of equity over time.”
Given that not everyone sees it this way, and many people are not able to buy at this time, the demand is increasing for good rental homes. Many people who could buy are choosing to rent these days. A recent Wall Street Journal feature titled A Bull Market in Rental Housing pointed out the opportunities for landlords, because in many areas such as ours, housing prices are down, mortgage rates are down, and rental demand is increasing.
Locally, this Spring, I’ve talked with quite a few people in the Annapolis area who could buy homes, yet are choosing to rent. They have been having difficulty finding quality rental homes, and good ones that are well-priced are going fast.
Call me today for all your Annapolis real estate needs.
Carlyn Lowery, Associate Broker, eXp Realty, Annapolis Real Estate, Anne Arundel County, Maryland, 443-569-3977 or 888-860-7369 x146