Home Ownership Matters: Buy or Rent?

There are many people deciding on whether to sign a new lease on a rental property or take the dive into homeownership. Every situation is different. However, with rents, home values and mortgage interest rates projected to rise, buying now might make a lot more sense than waiting until next year.

Here are others who seem to agree:

An article at NPR:

“Economists see several reasons why 2015 might be a banner year for homebuying — and not just in San Francisco and Miami.”

An article on Consumer Affairs:

“If you have been thinking about purchasing a home, the first half of 2015 might be a good time.”

An article on Fox Business News:

“As rent increases, it simply makes more sense to buy a home.”

Bottom Line

Buying earlier in the year probably makes more sense than putting off the decision.

Year End Home Market Report Released Yesterday

The Memphis Area Association of Realtors (MAAR) has released the December Market Report. The report shows year-end sales 2014 compared to 2013 for the overall Memphis area (which includes sales in Shelby, Fayette, and Tipton counties) declined by 3.9% while in comparison the month of December 2014 increased by 20.7% over December 2013.  The end-of-year average sales price increased by 6.6% over 2013.  Supply and Demand - Fewer homes on the market tend to increase sales prices. Foreclosure Sales continue to decrease. December of last year there were 214 bank sales as compared to 187 this year – a 12.6% decline for the month and a 20.0% decline for the year. This news may not be good news for investors; however, it is good news for our housing market.  

As in most cities, some communities are stronger than others. In comparison of 2014 to 2013, the two strongest markets were Millington and Collierville. Year End statistics show Millington with a 35.7% increase in the number of homes sold and an 8.8% increase in the average sales price.  Collierville also had an increase in home sales of 5.5% and an increase in the average sales price of 4.6%. Although both Arlington and Lakeland saw declines in the number of houses sold, both show a more than 4% increase in the average sales price. This is good news going into 2015.

For an in-depth report of Market trends for the Memphis area, click on the link below.

December 2014 Market Report

Existing Home Sales - Inventory - Prices are Up

Home Owenership Matters: Good news for buyers and sellers, according to the December 2014 report from the National Association of Realtors, things are looking up!