Monday, May 30, 2016 / by Tom Nickley
For the last few months, much has been said about how we are in a strong seller’s market. The lack of inventory, multiple offers, and higher sale prices have been a clear indication.
If you’ve been looking to buy a home in this market, it can get discouraging. Today we want to discuss why it’s actually a great time to buy a home right now.
Zillow recently did a study that proved it is still cheaper to own a home than it is to rent in all major markets in the U.S. Interest rates continue to be historically low; they are around the 3.4% to 3.6% range here in Orlando.
Homes are much more affordable in Orlando than they are in a lot of other markets. In fact, it is 36% cheaper to own a home than to rent one. Interest rates would have to increase by 10.6% for it to make more sense to rent than own. The U.S. has not seen interest rates that high since 1989.
While home prices are up by 75% to 80% over 2010 and 2011 numbers, they are still 30% lower than they were in the peak of the market during 2006 and 2007.
If you’ve been on the fence or thinking about buying, give us a call or send us an email. We have seen a lot of success in the current market with the strategies that we use. We would love to tell you about them.