We’ve told you recently, on more than a few occasions, that rents are rising across the valley. What may be frightening for those still renting, is that this trend does not seem to be going away. This is especially true for homes in the first time home buying range, where, there is actually a shortage across the valley for homes under 250k.
According to Catherine Reagor of the Arizona Republic; “Almost half of Valley renters saw their monthly payments jump by more than 9 percent in 2015.”
We’ve also been telling you for a long time that interests rates will eventually begin to rise, and to get in on the game while they remain depressed. On that count, interest rates have stayed low longer than us, or any of our real estate compatriots could have predicted. In fact, over the weekend, we have actually seen a slight lowering.
The story with interest rates, is that they generally have an inverse relationship with the overall economic health of our country overall. The more skittish investors become, the more they chase low risk investments, which keeps interest rates low. So often, what bodes ill for our economy, actually excites those of us who rejoice at low interest rates.
I do not mean to gloom and doom about our economy. Apparently, according to folks much more versed in such things, it is the geo-political economical situations that have investors more worried, not so much any particular alarms ringing from our side of the ocean.
The moral of the story remains what it has been since 2008-2009; First time home buyers, get in while the waters hot! My wife and I bought our home last May with a run-of-the-mill 3% down FHA loan, and already I know it would cost me $200 more a month to rent the home I live in than the mortgage is.
If you have you have friends or family that have been renting, encourage them to buy! And of course, give them our info while you’re at it 😉