Americans still believe in homeownership. And it turns out buying a house may be less expensive than renting. Trulia released a Rent vs. Buy index showing that renting is only less expensive than buying in 4 of the nations 50 largest cities: New York, Seattle, Kansas City and San Francisco. The only Wisconsin city of the list, Milwaukee, was borderline along with 10 other major metroplitan areas: "Slightly less expensive to rent but may make financial sense to buy." How borderline? Milwaukee’s score was 17. Cities with a score of 1-15 were deemed as more affordable to buy. Very close.
So what are renters thinking? If you are a renter, please weigh in with your thoughts in the comments.
Trulia’s American Dream survey involving renters shows that:
72% believe homeownership is part of their American dream (This number is down from 77 at the beginning of the year, but still a high number.)
27% of renters say they do not plan to buy a home
68% said it would be at least 2 years before they bought
23% said their attitude toward homeownership has become more positive in the last 6 months and 18% said it has become more negative.
What would cause renters to buy real estate in the next 12 months?
47% say if they saved enough for a downpayment. Yes, that is a hurdle to overcome. Renters or first time buyers should check out this previous article about first time buyer education and possible downpayment assistance from WHEDA .
28% said a new job
27% said low or lower interest rates (these have begun to climb)
23% Get a raise
9% stabilized local market
Buying a home for the first time is a learning experience and can be a little intimidating. One of the key factors in buying real estate is to think long term, so if a renter is still moving around, then renting is probably best for them. But many parents, realizing how affordable buying a home in Wisconsin is right now, are urging or helping their children to buy real estate.
Our advice to renters: Wisconsin real estate is very affordable right now and it is an excellent time to buy at low prices & low rates. Rising rates make a big difference over the course of a loan. There are many reasons to buy a home now.
Thanks for reading the First Weber Wisconsin real estate blog.