Trying to decide on whether it’s best to rent for another year or take the leap into homeownership? Take a look at earnings and savings and then decide what makes the most financial sense. That equation will most likely take into consideration monthly housing costs, tax advantages, and other incremental expenses. Using these measurements, recent studies show that it’s still more affordable to own than rent in most circumstances. Robb Realty Group can help you weigh your options to make an educated decision.
One key point
The financial advantage to owning a home that’s often forgotten in the analysis – the wealth built through equity when you own a home. According to economists the equity benefit of price appreciation and owning a home made more financial sense than renting in 48 of the top 50 markets. In 2020 home sellers nationwide realized a home-price gain of more than $68,000 on a typical sale, the highest level in the US since at least 2005, based on a median purchase and resale price. Check out Robb Realty's VIP Buyer Booklet which will help you navigate buying in this market.
The National Association of Realtors (NAR) reported that today, the median-priced home in the country sells for $309,800. If homes appreciate by 5% this year (the average of the forecasts), the homeowner will increase their wealth by $15,490 in 2021 through increased equity.
As you make your plans for the coming year, be sure to consider the equity benefits of home price appreciation as you weigh the financial advantages of buying over renting. When you do, you may find this is the perfect time to jump into homeownership.
If you're a seller
Robb Realty Group has a VIP Seller's Program and we're available to discuss the benefits to you during this market. The first step is to find out the value of your current home with our Instant Home Valuation tool.