The S&P/Case-Shiller national home index rose 12.2% in May compared to a year ago. This is the biggest annual increase in prices that we’ve seen since March 2006, right before the peak of the housing bubble. While this might be good news for current homeowners, it doesn’t help those who are looking for a new home. When national home prices and mortgage rates rise, it pushes home affordability beyond the reach of many.
Prices have been steadily increasing every month since June 2012, and with plenty of room for growth, they’re expected to keep rising. Some economists believe that this is the sign of a strengthening economy. Others think that this might actually pose a threat to the housing market. They fear that rising prices might lead us to another housing bubble, ending all of our progress.
Either way, renters will be able to benefit from an improving economy without feeling the sting of rising prices and rates. And, if there is another housing bubble in our outlook, renters will be saved from the woes of owning a home. This alone is a great reason why it makes sense to rent instead of buy in today’s market. Renters can pay their monthly rent at a predictable rate, and continue to save money for their future.
Those who choose to rent are also spared from the awful realities of foreclosures and high taxes on homeowners. With the market making changes everyday, it pays to have the added security by renting.
One factor that is contributing to the rise in home prices is the limited inventory of homes on the market. This drives prices up and makes finding a new home very competitive. Limited inventory is not a problem for renters right now. There is such a huge supply of apartments and rental properties that tenants have the luxury of choosing the perfect place. This also lets renters lease in an area where owning a home might be impractical, like a city.
Arcadia Run is the best choice for renters near the Washington D.C. area. Located in the beautifully historic town of Manassas, our apartments are all completely new with nine-foot ceilings, granite countertops, and balconies – and reasonably priced too. Find your next apartment in Arcadia Run!