As if record low mortgage rates and beaten down home prices weren’t enough to get prospective home buyers off the fence, there’s another factor that has made the case for buying even stronger: rising rents.
U.S. rents rose an average of 5.4% over the 12 months ended June 30, according to real estate website Trulia. Demand from former homeowners displaced by foreclosure and potential homebuyers who failed to qualify for mortgages have helped to send rents skyward.
Meanwhile, asking prices on homes listed for sale inched up a mere 0.3% over the same period, according to Trulia’s data. And while that’s the fourth increase in home prices in five months — an indication that prices may be starting to recover – the gains are modest compared to the increases in rental rates over the past 12 months.
Where renters have been hit hardest: Among the 25 largest housing markets in the country, the steepest rent increase was seen in San Francisco, where new renters are paying 14.7% more than they did a year ago. Meanwhile, over the same period, asking prices on homes for sale climbed a mere 2.5% in that metro area.
Posted In : Atlanta, Atlanta Beltline, Buyer Tools, College Park, East Point, Feed, First Time Homebuyers, Fort McPherson, Fulton County, Hapeville, Homepage, Metro Atlanta, Mortgage News, News & Reports, Real Estate, Renting, Sellers
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