Should I Buy Or Continue To Rent?

This is a question that a lot of first time buyers and people that have relocated to Charlotte area are contemplating. When is the time right to buy? If you listen to the news they will tell you the market has not hit bottom yet. But, these are the same people that are telling us the recession ended last year. There is no crystal ball or magic that can predict what the market is going to do today let alone in the next few months. All we can do is give you the facts about what the housing market is doing currently. Now, may be the right time for some people to buy. For others it might be in their best interest to wait. But before you make that descsion consider ALL the facts:

First, mortgage rates are at historic lows. By historic, I mean, they have never been this low EVER in the history of mortgages. Some buyers I have talked with told me it was like borrowing free money the rates were so low. Well maybe not quite free; but lower than ever recorded. The difference in the itnerest rate can increase your buying power in terms of price range you are looking in or substantially lower your existing payment on a home you have been saving to buy. consider in Charlotte, NC. the average home price hovers around $200,000. One percentage point in interest affects that payment by a little over a $100.00 a month.

Second, home prices are at 2004 price levels in much of the area in Charlotte. meaning the average person is earning more than they did in 2004 but paying 2004 prices for a home. This makes the amercian dream of owning a home more affordable to more people.

Third, the market is currently in a buyers market. By that I mean a stable market (one which does not favor the seller or the buyer) is a six month supply of inventory. Less than that favors the seller. More than that favors the buyer. Currently we are in a buyers market.

Fourth, owning a home gives you numerous tax benefits. A lot of first time buyers are unaware that the interest they pay on a mortgage is tax deductible. So, you are saving even more money when you go to file your taxes each year. Though you should consult your tax accountant for the full understanding of the tax benefit to owning a home.

Last, you may pay less to own a home than you are for rent right now. I went back and was talking to the first time home buyers or people that moved. I asked them if they were paying more, less or comparable to what they were paying before. ALL of the homeowners in the past year I sold homes to that were renting ; ended up paying the same or less than they were paying for rent. And they were in a larger space than their rental.

So, is it a good time to buy a home? For some off you the answer is going to be a resounding yes. For others it might be no. Each one is different; but one thing that is for certain the market has never seen this type of inventory coupled with interest rates this low increasing the buying power of the average american family.

Dave diCecco
Realtor/Broker
www.davedicecco.com