Rent is expected to continue rising in 2016, meaning that buying a home will continue to look better and better. Something that should interest real estate agents who specialize in the housing part of the real estate market.
Fairfax, VA -- (ReleaseWire) -- 04/27/2016 --According to RealtyTrac, the rent on three-bedroom residential properties is expected to rise 3.5 percent in 2016, which should reflect the trend in the rent on other residential properties. This is concerning because of anemic growth in wages in recent months, which suggests that renting will become more and more unaffordable for housing consumers in significant swathes of the United States. As a result, real estate agents who specialize in the housing market should consider capitalizing on this trend by emphasizing the upsides to buying rather than renting a home.
In short, the same report states that the prices for homes are rising throughout the United States. However, different regions are seeing different rates because the US housing market is not a single market so much as a collection of related markets separated by geographical considerations as well as other relevant factors. As a result, it should come as no surprise to learn that buying a home is still considered more affordable than renting a home in 58 percent of US housing markets even though the costs of buying a home increased more than the costs of renting a home in 55 percent of US housing markets.
By bringing up this fact, real estate agents in the right US housing markets can point out that home ownership is more beneficial than ever. After all, the money paid when buying a home builds up the homeowner's equity, which can have all sorts of uses, ranging from a convenient store of wealth to potential collateral for low-interest loans. In contrast, the money paid when renting a home is nothing but an expense, which will have no benefit in the long run whatsoever. With the expected trends when it comes to rising rent throughout the United States in 2016, these facts promise to hold true more than ever.
It is particularly important to note that buying a home is expected to become somewhat more difficult in the near future. This is because the Federal Reserve is expected to raise its interest rates sometime in the near future in response to an improving economy, which will have corresponding effects on interest rates throughout the US economy. As a result, there is a sense of urgency for housing consumers to buy now before homes become even more expensive, which can be useful for real estate agents who specialize in the housing market.
However, it is important to note that economic forecasts can be uncertain, meaning that these trends may or may not hold true throughout 2016. As a result, real estate agents should keep a close eye on them through real estate specialists such as Commission Express, which will keep them up-to-date on all of the latest developments that can impact their businesses.
For more information, please visit https://www.commissionexpress.com/