{"id":4172,"date":"2019-01-25T07:57:27","date_gmt":"2019-01-25T12:57:27","guid":{"rendered":"https:\/\/dankrell.com\/blog\/?p=4172"},"modified":"2019-07-23T06:50:49","modified_gmt":"2019-07-23T10:50:49","slug":"buy-vs-rent-housing-market","status":"publish","type":"post","link":"https:\/\/dankrell.com\/blog\/2019\/01\/25\/buy-vs-rent-housing-market\/","title":{"rendered":"Buy vs rent market"},"content":{"rendered":"\n
\"buy
Buy vs Rent Housing Market (infographic from keepingcurrentmatters.com)<\/figcaption><\/figure><\/div>\n\n\n\n

After last year\u2019s active spring, the housing market\u2019s fall home sale decline shocked many.\u00a0 Although home sales were on target to outpace the previous year\u2019s activity, the slowdown diminished the spring\u2019s impact.\u00a0 In fact, the National Association of Realtors (nar.realtor) January 22nd<\/sup> press release indicated a sharp decline of home sales during December.\u00a0 The 6.4 percent month over month nationwide decline should not have been a surprise because of the season.\u00a0 However, December\u2019s nationwide 10.3 percent sales decline from the previous year is significant.\u00a0 The Greater Capital Area Association of Realtors<\/a> (gcaar.com) indicated that Montgomery County single family home sales decreased 12.2 percent during December. Is this an indication of another buy vs rent market?<\/p>\n\n\n\n

Back in August, I predicted<\/a> and discussed the causes for the fall\u2019s sales slowdown.  Among the issues that contributed to the slowdown include increasing mortgage rates and the continued home sale inventory shortage. However, it\u2019s important to note that although home sales seemed to go to sleep during the early winter, home sale prices continue to increase.  It\u2019s not the 4-5 percent price gain that home owners have become accustomed.  But the 2.9 percent nationwide price increase (2.7 percent increase in Montgomery County) during December is indicative that home ownership is still valued. <\/p>\n\n\n\n

Although there are many who are saying it\u2019s now a\nbuyer\u2019s market, it\u2019s not entirely true. \nThe current housing environment has home buyers under pressure.  Increasing mortgage interest rates are making\nbuying a home more expensive, and there are not many homes from which to choose.  Consequently, motivated home buyers who are\neager to buy a home during the winter are pushing back against high home\nprices.  The reality is that home sellers\nwill remain in the driver\u2019s seat as long as they price their homes correctly.<\/p>\n\n\n\n

There is a lot of promise for the spring, but it still depends on many factors (such as inventory).  But the push back on increasing home prices will likely continue, as home buyers are increasingly sensitive to housing costs.  “Buy vs rent” and housing affordability will once again become hot topics this spring.  <\/p>\n\n\n\n

Buy vs rent is on the mind of home buyers. Although buyers are in the market to buy, there is no urgency. However, it’s clear that this market is about value.<\/p>\n\n\n\n

If you\u2019re a home buyer trying to figure out the market, consulting with a professional Realtor can help you decide if it\u2019s the right time to buy a home.\u00a0 Trulia\u2019s Rent vs. Buy Calculator (trulia.com\/rent_vs_buy\/) is a tool that compares the cost of buying to renting a home over time in a specific area.\u00a0 It can estimate the point at which home buying is better than renting.\u00a0 However, depending on your budget and area, renting may be a better financial option.\u00a0 Montgomery County Department of Housing and Community Affairs <\/a>(montgomerycountymd.gov\/DHCA) and the Housing Opportunities Commission<\/a> (hocmc.org) offers affordable housing programs for first time home buyers and renters.<\/p>\n\n\n\n

If you\u2019re a home seller<\/a>, think back to the 2014 spring housing market when home buyers pushed back at the sharp home price gains of 2013.  It\u2019s recommended that you don\u2019t take home buyers for granted, buyers are just as savvy as you.  Keep in mind that buyers are thinking about “buy vs rent.” Don\u2019t over-price your home, however expect to negotiate the price.  Make your home show its best through preparation and staging.  Stay away from cheap renovations meant to look expensive, this can actually decrease your home\u2019s value.  If you\u2019re selling \u201cby owner,\u201d consider consulting a staging professional to help prepare and stage your home.  If you\u2019re listing your home with a Realtor, your agent should have a strategy to sell for top dollar in this market.  <\/p>\n\n\n\n

By Dan Krell<\/a>. Copyright \u00a9 2019. <\/p>\n\n\n\n

Original published at https:\/\/dankrell.com\/blog\/2019\/01\/25\/buy-vs-rent-housing-market<\/p>\n\n\n\n

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\nDisclaimer<\/a>.\n This article is not intended to provide nor should it be relied upon \nfor legal and financial advice. Readers should not rely solely on the \ninformation contained herein, as it does not purport to be comprehensive\n or render specific advice. Readers should consult with an attorney \nregarding local real estate laws and customs as they vary by state and \njurisdiction. Using this article without permission is a violation of \ncopyright laws.<\/p>\n","protected":false},"excerpt":{"rendered":"

After last year\u2019s active spring, the housing market\u2019s fall home sale decline shocked many.\u00a0 Although home sales were on target to outpace the previous year\u2019s activity, the slowdown diminished the spring\u2019s impact.\u00a0 In fact, the National Association of Realtors (nar.realtor) January 22nd press release indicated a sharp decline of home sales during December.\u00a0 The 6.4 … <\/p>\n

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