Not long ago, many people considered buying real estate part of the American Dream. It was a goal that most everyone looked forward to.
That was before the most recent market crash.
Now, more and more people are starting to think they are better off (at least, financially) renting instead of buying.
This departure from the past is picking up steam, even throughout Florida.
Even renters who are able to qualify for mortgages feel as though they are getting enough home for their money when they rent.
In some instances, people are opting to pay just as much as (and sometimes more) than a mortgage payment.
3 Reasons for the Shift
1) Some renters are holding off on buying because they are concerned that prices still have not hit their lowest points. If they purchase a home today, it may be worth less in a few months. Thus, they are waiting to see how the market recovers and home values stabilize.
2) Other renters are foregoing buying because of the responsibilities that are involved in owning a home. In Florida, many homeowners are still trying to recover from damage caused by hurricanes, floods and other disasters that insurance did not cover.
3) Homeowners that are reluctant to sell due to the present market are also contributing to the shift. While they hold off on selling and wait for the market to recover, a growing number are offering their homes for rent.
Due to this recent shift, real estate experts are realizing that today’s market is no longer just a buyer or seller’s market. Instead, it is becoming more of a renter’s market.
Have you witnessed this growing interest in renting?
Homeowners are not the only people affected by the rising foreclosure rates.
Earlier this year, lawmakers passed an $8000 tax credit for first-time home buyers. As the tax credit gained popularity, first-time buyers began taking advantage of the credit which resulted in a welcomed increase in the number of home sales.
