A lot of people are still renting even though owning a home has great financial benefits. Why is owning a home better than renting? That is a very easy question.
According to Zillow:
“In reality, buying or renting a home is an intensely personal decision, with emotional and even financial considerations that go beyond whether to invest in this one (admittedly large) asset. Looking strictly at housing market numbers, there is a concrete point at which buying a home makes more financial sense than renting it.”
Why is it financial better to own a home? Here’s why.
1. Top 5 benefits
Owning a home is like having forced savings.
It is cheaper to buy than to rent.
It’s the only investment where you can live inside it.
Locked in monthly housing cost
Tax savings
2. Net worth is 44x greater than that of a renter if you own your own home.
3.If you bought a home in early 2017, in just 5 years you could build more than $48,000 in wealth.
4. Your rent isn’t just rent. Included in the rent are probably the taxes, the money needed for repairs and profit for the landlord.
However you look at it, owning your own home is better financially than renting.
Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist, SRES – Senior Real Estate Specialist who can help you navigate thru the process and get the job done for you. Pete Veres has had over 25 years of Sales & Marketing experience and excellent negotiating skills.
You can contact him by calling 505-362-2005 or by emailing him at [email protected].
He has a great website full of the latest information at www.NMElite.com
Nationwide Seller’s Market Reigns as Home Prices Climb
DENVER – Despite record low inventory for the month, October home sales increased 2.5% year-over-year and kept 2017 prices ahead of 2016, according to this month’s RE/MAX National Housing Report. To access the housing report infographic, visit: rem.ax/2cYFT50.
Thirty-seven of the 53 metro markets in the November RE/MAX National Housing Report posted sales increases over October 2016. Meanwhile, inventory gauges were at their lowest point for an October in the report’s nine year history. The Months Supply of Inventory dropped to 3.3 – the lowest for any October in this housing report. It was mirrored by the Days on Market average of 51 days, also a new low for October for the report and a full week faster than the selling rate of homes in October of last year.
The Median Sales Price of $224,000 increased 3.3% over last October and was $19,000 higher than the same month in 2015. The median price remained on a par with the prices of last spring that kicked off the peak summer selling season.
“The housing market is steady and at least somewhat predictable with record-low inventory and increasing prices in markets across the country,” said Adam Contos, RE/MAX Co-CEO. “With job growth and increased household formation, buyers will struggle and may even be priced out of the market until home building catches up.”
Closed Transactions Of the 53 metro areas surveyed in October 2017, the overall average number of home sales decreased 3.4% compared to September 2017 but increased 2.5% compared to October 2016. Thirty-seven of the 53 metro areas experienced an increase in sales year-over-year including, Albuquerque, NM,+19.8%, Augusta, ME, +14.1%, Las Vegas, NV, +13.2%, Billings, MT, +12.4% and Providence, RI +11.4%.
Median Sales Price – Median of 53 metro median prices In October 2017, the median of all 53 metro Median Sales Prices was $224,000, down 1.1% from September 2017 but up 3.3% from October 2016. Only three metro areas saw a year-over-year decrease in Median Sales Price or remained unchanged (Wilmington/Dover, DE, -4.1%, Trenton, NJ, -1.0%, and Cincinnati, OH, at 0.0%). Eight metro areas increased year-over-year by double-digit percentages, with the largest increases seen in Las Vegas, NV, +16.3%, Birmingham, AL, +12.3%, New Orleans, LA, +12.3%, Des Moines, IA, +12.0% and Seattle, WA, +11.6%.
Days on Market – Average of 53 metro areas The average Days on Market for homes sold in October 2017 was 51, up two days from the average in September 2017, and down seven days from the October 2016 average. The four metro areas with the lowest Days on Market were San Francisco, CA, at 24, Omaha, NE, at 26, Seattle, WA, at 27, and Nashville, TN, at 28. The highest Days on Market averages were in Augusta, ME, at 108 and Burlington, VT, at 89. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed.
Months Supply of Inventory – Average of 53 metro areas The number of homes for sale in October 2017 was down 6.3% from September 2017, and down 13.4% from October 2016. Based on the rate of home sales in October, the Months Supply of Inventory decreased to 3.3 from September 2017 at 3.6, compared to October 2016 at 3.9. A 6.0-months supply indicates a market balanced equally between buyers and sellers. In October 2017, 50 of the 53 metro areas surveyed reported a months supply at or less than 6.0, which is typically considered a seller’s market. The metro areas that saw a months supply above 6.0, which is typically considered a buyer’s market, were Miami, FL, at 7.3, Birmingham, AL, at 6.8 and Augusta, ME, at 6.5. The markets with the lowest Months Supply of Inventory continued to be in the west with San Francisco, CA, at 1.0, Denver, CO and Seattle, WA, at 1.3, and San Diego, CA, at 1.8.
Feel free to contact me and I can help break down exactly what these numbers mean for our local market and for your neighborhood.
And lastly, If you or anyone you know is thinking of buying or selling a home - please call or email me. I'm here to help!
Peter Veres
Associate Broker, CRS,ABR,CLHMS,SRES
Elite Asset Management Team - RE/MAX Elite
www.PeteVeres.com
Cell: 505-362-2005
Office: 505-798-1000
Feel free to contact me and I can help break down exactly what these numbers mean for our local market and for your neighborhood. And lastly, If you or anyone you know is thinking of buying or selling a home - please call or email me. I'm here to help!
Peter Veres Associate Broker, CRS,ABR,CLHMS,SRES Elite Asset Management Team - RE/MAX Elite
For weeks, the mortgage rates have been going up. This is according to a report by Freddie Mac. Multiple sources like Freddie Mac, the Mortgage Bankers Association and the National Association of Realtors, are saying that mortgage rates will continue to rise in the next year.
Right now, it is still at a historic low. It is lower than what it used to be 10 or 20 years ago.
Chart of average mortgage interest rate of the past decades.
Since mortgage rates are projected to rise, it is wise to purchase now before it gets higher by the next 4 quarters.
Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist who can help you navigate thru the process and get the job done for you. Pete Veres has had over 25 years of Sales & Marketing experience and excellent negotiating skills.
You can contact him by calling 505-362-2005 or by emailing him at [email protected].
He has a great website full of the latest information at www.NMElite.com
Homeownership is now gaining momentum. It is now rebounding from recent lows and is going the right path. Everyone has different reasons to buy a home. Owning your own home is a dream come true and it gets better.
Here are 5 financial reasons why you should buy a home.
Equity – With your monthly mortgage payments, you build equity. You can put this towards home repairs or renovations, pay a debt, or even set it aside for your child’s education.. When you rent, your landlord gets that equity.
Save on Tax – Who doesn’t want to save on taxes? You can deduct your mortgage interest, profits from selling your home, and property taxes. Speak with an accountant to be sure which taxes can be deducted in your area.
Steady Housing Cost – Rent gets higher as years pass. When you purchase a home, you get to pay a fixed amount each month. You home value may rise due to inflation, but you’ll still be paying the same amount monthly.
Renting is more EXPENSIVE – You may not believe it, but it’s true. According to a report done by Trulia, it is now less expensive to own a home than to rent. About 37.4% less to be exact. It varies depending on the location, but it ranges from 6% cheaper in San Jose, CA to 57% cheaper in Detroit, MI.
Home and Investment – Your home is an investment. The price will continue to rise as years pass which will result in more money if you decide to sell it. And you can live in it. You can live your life and build memories and also earn at the same time. Owning your own home seems like the smartest move to me. What do you think?
Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist, SRES – Senior Real Estate Specialist who can help you navigate thru the process and get the job done for you. Pete Veres has had over 25 years of Sales & Marketing experience and excellent negotiating skills.
You can contact him by calling 505-362-2005 or by emailing him at [email protected].
He has a great website full of the latest information at www.NMElite.com
