From renters to buyers
By Academy Mortgage Corp.
The cost of renting an apartment continues to rise in many popular cities. In some instances, buying a home is now more affordable than continuing to rent a space to live.
Millennial buyers expected to represent the largest demographic purchasing homes in 2015. According to Zillow, an online real estate company, renters who have been considering homeownership are now taking their first steps and applying for U.S. home mortgages.
"We finally have more buyers who are serious now," said Cyndi Mino, an agent with First Team Real Estate Agents. "Landlords are raising rents ridiculously high, and people are saying, 'That's it - it's time to buy.'"
With more individuals deciding to make the transition to homeownership, the real estate market will likely continue to strengthen. Paying for a monthly mortgage will be more affordable and make more financial sense for many individuals.
"They never thought they would or could buy, but with rents going up, if they can save enough money to buy, they'll pay less for a mortgage [than for rent]," stated Mino.
Rising rents may keep some individuals from saving for a down payment. While purchasing a home may be more affordable than renting, the rising cost of apartment living may make saving for a down payment more difficult, reported the Chicago Tribune.
The higher cost of rent makes the low down payment options available through government-sponsored enterprises even more essential to the continual improvement of the housing market. Making homeownership attainable for those who currently rent will help encourage them to enter the housing market.
Academy Mortgage is one of the top independent purchase lenders in the country as ranked in the 2014 CoreLogic Marketrac Report. Visit www.academymortgage.com to find a loan, get a rate, or calculate your payment today.