Should I Keep Renting Until Prices Go Lower?  

Home prices in Sanford and most of North Carolina have not declined.  The news of price declines is in areas of the country that have had huge run-ups in price such as Florida, California, Nevada and some resort areas where speculators have driven prices beyond where they should be.  These areas are experiencing a “correction” in pricing.  Locally we have not experienced this run-up in pricing so no “correction” is happening or apt to happen in this area.  

The best way to “play it safe” is to actually buy a home. Here’s why: studies show that owning a home is the best way to build household wealth. The sooner a person owns a home, the faster they begin to build up equity and wealth. 

When you buy a home, you are also purchasing price stability, knowing that you will pay the same monthly payment for the life of your 30-year, fixed-rate mortgage. 

Now consider the current rental market. While home prices have been moderating, rents continue to rise. Where is the economic security in not knowing how much your rent will increase in the next three years? You don’t receive any tax benefits from paying rent, nor do you accumulate any price appreciation, as you would if you owned a home of your own. 

All of the economic fundamentals show that this is a good time to buy a home. And continuing strength in rental demand signals that there is upward pressure on rental apartments. The real risk isn’t in buying a home, it’s continuing to rent.  

For the past 38 years the staff at The Groce Companies has helped consumers in central North Carolina design, build and secure financing to build or buy their homes.  We find many people who do not fully understand the home buying process.  If you are interested in attending a seminar on these issues call (919) 775-1497.  And visit our web site, www.grocecompanies.com where we will be posting this entire series of helpful hints.  

(This information obtained from various news and industry sources and is believed to be correct.)