Buying a home continues to be less expensive than renting in the Boston area. Recent studies and surveys have almost belabored the point based on home values and historically low interest rates. But new data suggests renters have clearly noticed the trend and many plan to jump into the home buying market sooner rather than later.
60% of renters who hope to one day own a home now plan to buy one in the next two years, according to a survery by national homebuilder Pulte Group. The top three reasons cited were to live the American Dream of home ownership, viewing home ownership as a good financial investment, and the need for more space and freedom provided in most rental situations.
Deborah Meyer, senior vice president of Pulte Group, says, "Homeownership is more attainable than ever with historically low mortgage rates and competitive pricing, as well as affordable new homes designed for first-time home buyers coming into the market."
But there are also some reasons why some renters are still holding out. Of course, some renters still not convinced that buying is cheaper than renting. Other reasons include not having enough down payment for a home and fear of job loss.
Another survey turned up some interesting expectations regarding multi-generational housing.
31% of homeowners with children aged 16 to 30 and those with living parents anticipate having at least one child returning to the nest down the road.
That should help usher in a boom period for both homebuilders and home sellers.
Nearly half of homeowners who are expecting their children to return will either renovate their existing home or purchase a new one.
If you find yourself in this situation, and decide to buy rather than renovate, look for an agent who will look out for your best interest.
Ronn Huth (800) 25 BUYER