The real estate market is similar to the stock market in that it is normal for the market to shift gears and switch from a seller’s market to a buyer’s market and vice versa. In other words, the current market conditions will not last forever. If you ever wanted to purchase a home for any reason, now is the time. The present real estate circumstances, such as low interest rates and home prices have fostered an environment that have set up both current and potential real estate buyers for success.
Below is an in depth look at why NOW is the time to buy rather than rent your home in metro Atlanta:
Owning is less expensive than Renting in Metro Atlanta
The combination of low interest rates and home selling prices have made it possible for buyers to become home owners for much cheaper than then rapidly rising Metro Atlanta rental rates. In fact, Zillow came out with its rent vs. owning index, which shows it is currently more expensive to rent than own a three bedroom, two bath home in most of America’s 50 largest cities.
Another explanation of the current rise in rental rates is supply and demand. The massive shortage of rental properties have lead to an significant increase in rental prices. The timing is now PERFECT for home buyers to take advantage of the current prime real estate environment.
Going, going, GONE. Low interest rates won’t last forever
Most experts do not expect the current low interest rates to last forever. Currently, potential home buyers can take advantage of low interest rates. However, factors such as impending mortgage reform and the fact that interest rates will increase as the economy improves come together to suggest that interest rates will eventually rise. Because the combination of both price and interest rates determine the overall cost of home ownership, it is imperative that anyone looking to buy real estate take advantage of the low interest rates while they are still available.
In closing, renting a home is the equivalent of having an adjustable rate loan with no cap that will readjust with higher rental rates each year. By locking in the current low interest rates, potential home owners can guarantee that the price of their living expenses stays the same, year after year. With that being said, low interest rates and rising home prices have set the stage for Metro Atlanta home buyers to enjoy the benefits of home ownership.
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