With interest rates hovering around the 4% mark on a 30-year fixed mortgage, owning a home has become cheaper than renting in 12 metropolitan areas, including Miami, Orlando, Atlanta, and Chicago.
The Wall Street Journal states, “Home prices and mortgage rates have fallen so far that the monthly cost of owning a home is more affordable than at any point in the past 15 years and is less expensive than renting in a growing number of cities.”
Inventories of existing homes have begun to drop. Miami alone saw a 50% drop in their available inventory. South Florida has become a focal point for Northerners who are looking for a warmer climate, or Canadian property investors looking for homes to rent season to season.
Other areas where renting is becoming more expensive than home ownership include Jacksonville, Phoenix, Tampa and Las Vegas. All these areas are primed to see an increase in property sales and real estate values.
Although finding a buyer may not be as simple as it was five years ago, the recent figures show that people are looking for properties. The more properties sell, the higher property values will go. Listing a property now may gain you a buyer quicker than you think.