Tips for Homebuying 2021
Crossland Title Inc. is a Knoxville title agency providing full-service real estate title solutions. Crossland Title Inc. makes your closing seem effortless.
With more than 36 years of experience in the real estate and title business, owners Pam Rice and Beth Crox have built their reputations upon the virtues of personal service and integrity. They believe that reputation as an honest and reliable business is the recipe for success.
Rent has Increased to Match the Housing Market
Yes, home prices have come up, and you can try and wait them out. However, rent prices have been going up as well. At the end of the day, you’re still paying someone’s mortgage – it’s just not your own.
According to data from Realtor.com, rental prices in 44 out of 50 of the country’s largest metro areas have surpassed their pre-pandemic levels. Nationwide the median rent is now at a historical high of $1,575 (as of June) – which is up 8% from just last year.
Unfortunately, the entire housing market is being squeezed upward right now. This is due to low inventory, so renting is not an escape from high prices.
“If you’re renting and you’re waiting for the market to soften and you sign another lease, most people are paying a minimum of $1,500 a month rent right now,” observes Orlando-based buyer agent Renee Benson. “So that’s $1,500 that you’ll never see again, and you might be waiting for the housing market to soften – but it may never soften $1,500 a month worth.”
An additional benefit of having a mortgage is that your mortgage payment stays the same. Once your lease ends and you go to re-sign, your landlord can ask you for $200 extra a month if they want, but the bank can’t ask you to pay more for the same reason. Your mortgage serves as a hedge against the rising cost of housing.