When renting’s right; when buying’s better – Irvine Homes for Sale – Irvine Real Estate

by Robert Mack on November 29, 2010

in Buyers, Latest News

As Kim Valentine waits for her Wendell house to be sold or foreclosed upon by her bank, there’s one thing she’s certain of.

She won’t be buying another home anytime soon.

“I think I’m just going to stay where I am,” said Valentine, 45, who began renting a house in May after a divorce left her unable to make her monthly mortgage payments on her own. “It’s just the way the economy is right now. It’s just too uncertain to make any permanent decisions.”

Valentine’s house has been on the market for nine months and has drawn little interest. Although losing the house to foreclosure will damage her credit, she’s now renting a house she can afford.

“I’m going to spend the next couple of years paying off what’s left and getting out of this mess and rebuilding my credit,” she said.

Among the many things to come out of the recession is a significant increase in the number of people who are no longer able, or willing, to buy a home.

Some can’t buy because they can’t sell their existing homes. Others have damaged their credit to the point that getting a loan is no longer possible. Still others have decided to rent because their economic futures are too uncertain to justify taking on mortgages.

“We are seeing a real increase in people questioning whether renting or buying is right for them,” said Tara-Nicholle Nelson, a spokeswoman for the real estate website Trulia.com. “And that’s something that’s totally an artifact of the recession.”

This year, Trulia created an index that compares the cost of renting versus owning in 50 markets across the United States.

Raleigh’s ranking indicates that the Triangle is a fairly balanced market: The cost of owning is not prohibitively expensive, and the prices are not so cheap that sellers are being crushed.

Most of the cities where buying is most affordable are foreclosure hot spots such as Miami, Phoenix and Detroit. Those cities are also seeing rental rates rise as foreclosed upon homeowners rush into rental properties and drive rates up.

Cities where renting makes the most sense are places such as San Francisco and New York, where prices are high and rent control laws make renting much more affordable.

The Triangle’s relatively stable pricing hasn’t prevented its housing market from experiencing a severe slowdown since the federal homebuyer tax credits went away.

via newsobserver.com CLICK HERE FOR THE FULL ARTICLE

Going through a short sale or foreclosure right now is NOT uncommon. On top of that, even if you are not experiencing that right now, the uncertainty of the market has created some fear in many home owners now that say they won’t buy again for a long time. They would rather rent a home than buy one and possibly get stuck in the same mess….

Check out the article above and see why buying still may be the best decision for you!

Posted on Irvine Orange County Real Estate Market News

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Post by Robert Mack

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