Issuu

IsItBetterToRentorBuyaHome?

You’veprobablyaskedyourselflately:Isitevenworth tryingtobuyahomerightnow?

Withhighhomepricesandstubbornmortgagerates, rentingcanseemlikethesaferchoicerightnow.Or maybeyouronlychoice.That’saveryrealfeeling.You shouldonlybuyahomewhenyou’rereadyandableto doit,andifthetimingisrightforyou.Buthere’sthe thingyouneedtoknowaboutrenting.

Whileitmayfeellikeasaferbettoday–andinsomeareasmightevenbelessexpensivemonthto-monththanowning–itcanreallycostyoumoreovertime.Infact,arecentBankofAmerica surveyfound70%ofaspiringhomeownersworryaboutwhatlong-termrentingmeansfor theirfuture.Andthey’renotwrong.Owningahomemayseemwayoutofreach,butifyoumake aplannowandsteadilyworktowardit,homeownershipcomeswithseriouslong-term financialbenefits.

HomeownershipBuildsWealthOverTime

Buyingahomeisn’tjustabouthavingaplacetolive–it’sasteptowardbuildingyourfuture wealth.Why?Homepricestypicallyriseovertime,whichmeansthelongeryouwait,themore expensiveitistobuy.Andeveninsomemarketswherehomepricesaresofteningtoday,the overalllong-termtrendspeaksforitself(seegraphbelow):

Andashomevaluesrise,sodoesyourequitywhenyou’reahomeowner.That’sthedifference betweenwhatyourhomeisworthandwhatyouowe.So,witheverymortgagepayment,that equitygrows.Overtime,thatbecomespartofyournetworth.

Today,theaveragehomeowner’snetworthisnearly40Xgreaterthanthatofarenter That’sashockingdifference,andthedollarsinthevisualbelowdon’tlie(seegraphbelow):

Andit’soneofthebigreasonswhyForbessays:

“Whilerentingmightseemlike[the]lessstressfuloption...owningahomeisstillacornerstone oftheAmericandreamandaprovenstrategyforbuildinglong-termwealth.”

TheBiggestDownsideofRenting

So,short-term,whydoesrentingfeellikeasimplerchoice?Lowermonthlypayments,less responsibility,nostringsattached.Butlong-term?Itcansting.

Fordecades,whilehomepriceshavebeenrising,renthasgoneuptoo.Andwhilerenthas heldrathersteadymorerecently,historyshowstheoveralltrendisupandtotheright.That makessavingforahomemorecomplicatedthanever(seegraphbelow):

Thatkindoffinancialuncertaintyhasarealimpact.InthesameBankofAmericasurvey,72%of potentialbuyerssaidtheyworryrisingrentcouldaffecttheircurrentandlong-termfinances. Becauserentdoesn’tbuildwealth.Itdoesn’tcomebacktoyoulater.Itpaysyourlandlord’s mortgage–notyours.So,whetheryourentorown,you’repayingamortgage.Thequestionis: whosemortgagedoyouwanttopay?

Rentingvs.Buying:WhatReallyMatters

Thinkofitthisway.Rentingmeansyourmoneyisgoneonceyoupayit.Owningmeansyour paymentbuildsequity–likeasavingsaccountyoucanlivein.Sure,buyingcomeswith responsibility.Butitalsocomeswiththekindofrewardthatgrowsovertime.Andthat’swhyyou needasolidplantogetthere.

BottomLine

Rentingmayfeelmoredo-abletoday.Butovertime,itcouldcostyoumore–without helpingyoubuildanythingforyourfuture.

Ifhomeownershipfeelsoutofreachtoday,you’renotalone.Andthefirststeptowardgetting outoftherentaltrapistosetaplan.Let’sconnect,setyourspecificgoals,andexploreyour options–soyou’rereadywhenthetimeisright.

Householdsworkingontheirbudgetwillfinditmuch easiertocontinuetorentthantogothroughthe expensesofhomeownership.However,theyneedto considertheequityandgenerationalwealththeycan buildupbyowningahomethattheycan’tbyrenting it.Inthelongrun,buyingahomemaybeabetter investmenteveniftheshort-runcostsseem prohibitive.

JoelBerner

WhyYourHomeSearch

JustGotEasier

There’snoarguingthepastfewyearshave beenchallengingforbuyers.Butthere’sonebig brightspottodaythatmakesfindingahomein yourbudgetabiteasier.Andthat’showmuch inventoryhasgrown.

Let’slookattwoareaswherewe’veseenalot moreoptionslately,soyoucanstartdreaming ofthepossibilities.

1.ThereAreMoreExistingHomesforSale

DatafromRealtor.comshowsthenumberofexistinghomesforsale(onesthathavealreadyhad anowner)hasgoneupby30.6%comparedtothesametimelastyear.Andexpertssayyour poolofoptionsisexpectedtogetevenbetterthroughouttheyear.Forecastsshowinventoryis projectedtogrow11-15%bytheendoftheyear(seegraphbelow):

2025For-Sale InventoryForecasts

Thatmeansyou’llhaveabetterchanceof findingahomethatmeetsyourneedsand budgetnowthatinventoryhasgrown.As RalphMcLaughlin,thentheSenior EconomistatRealtor.com,says:

“Itcouldbeaparticularlygoodtimeto getoutintothemarket...you'regoing tohavemorechoice.Andthat'snot somethingthatbuyershavereallyhadmuch overthepastseveralyears.”

DarylFairweather,ChiefEconomistat Redfin,seemstoagree,saying:

“Nowisthebesttimetobuyinthelast twoyears...thereissignificantly moreinventory...”

2.ThereAreMoreNewlyBuiltHomesontheMarket

AccordingtodatafromtheCensusandtheNationalAssociationofRealtors(NAR),28.6%of homesonthemarketrightnowarenewlybuilthomes.That’smorethanthenorm(seecharts below).Butdon'tworry,that'snotbecausebuildersareoverdoingit–it’sjustthatthey’retryingto catchupafteryearsofunderbuilding.

From1983-2019,anaverageofonly13% ofhomesforsalewerenewlybuilt

AsofApril2025,almost30%of allhomesforsalewerenewlybuilt

Source:NAR,Census

Andthebestpartis,sincebuildershavebeenfocusingonsmallerhomeswithlowerpricepoints, youmayactuallyfindoutnewbuildsarelessexpensivethanyou’dexpect.So,whilealotof peoplewriteoffnewconstructionbecauseit’seasytoassumethecostsarewayhigher,lately, thatpricegapisn’twhatyou’dexpect.AsCNETsays:

“Ifyouliveinanareawherethere'salotofnewconstructionhappening...youmightbeableto purchaseanewhouseforapricesimilartoorevenlessthanapre-ownedone.”

Ifyouhaven’tbeenabletofindahomethat’sinyourbudget,it’stimetoaskyouragentaboutnew builds.Ifyoudon’t,youmaybecuttingyourpoolofoptionsbyaboutathird.

BottomLine

Morechoicesmeansmoreopportunitiesforyou.Reachoutifyouwanttoseewhat’savailable inandaroundourarea.

WhatanEconomicSlowdown CouldMeanfortheHousingMarket

Talkabouttheeconomyisalloverthenews,andtheoddsofarecessionarerisingthisyear. That’sleavingalotofpeoplewonderingwhatitmeansforthevalueoftheirhome–andtheir buyingpower.

Let’stakealookatsomehistoricaldatatoshowwhat’shappenedinthehousingmarketduring eachrecession,goingallthewaybacktothe1980s.Thefactsmaysurpriseyou.

ARecessionDoesn’tMeanHomePricesWillFall

Manypeoplethinkthatifarecessionhits,homepriceswillfallliketheydidin2008.Butthat wasanexception,nottherule.Itwastheonlytimethemarketsawsuchasteepdropinprices. Andithasn’thappenedsince,mainlybecauseinventoryisstillsolowoverall.Eveninmarkets wherethenumberofhomesforsalehasstartedtorisethisyear,inventoryisstillfarbelowthe oversupplyofhomesthatleduptothehousingcrash.

Infact,accordingtodatafromCotality(formerlyCoreLogic),infourofthelastsixrecessions, homepricesactuallywentup(seegraphbelow):

So,don’tassumearecessionwillleadtoasignificantdropinhomevalues.Thedatasimply doesn’tsupportthatidea.Instead,homepricesusuallyfollowwhatevertrajectorythey’realready on.Andrightnow,inmostplaceshomepricesarestillrising,justataslowerpace.

MortgageRatesTypicallyDeclineDuringRecessions

Whilehomepricestendtostayontheircurrentpath,mortgageratesusuallydropduring economicslowdowns.Again,lookingatdatafromthelastsixrecessions,mortgageratesfell eachtime(seegraphbelow):

So,arecessionmeansratescoulddecline.Andwhilethatwouldhelpwithyourbuyingpower, don’texpectthereturnofa3%rate.

BottomLine

Theanswertotherecessionquestionisstillunknown,buttheoddshavegoneup.However, thatdoesn’tmeanyouhavetoworryaboutwhatitmeansforthehousingmarket–orthe valueofyourhome.Historicaldatatellsuswhatusuallyhappens.

Itisveryreasonablethatbuyersmayfeelhesitantto makeasignificantfinancialdecisionwhilethepath forwardfeelsuncertain.However,homeshoppers canpreparetobesuccessfulbymakingsurethey arelookingathomesthatfitverycomfortablyintheir budget.Iftherighthousecomesontothemarket attherightprice,buyerscanfeelconfident movingforwardwithahomepurchase.

Fromhighhomepricestomortgagerateswings,thehousingmarkethasleftalotofpeople wonderingwhat’snext–andwhethernowisreallytherighttimetomove.Thereisoneplaceyou canturntoforanswersyouwantthemost.Andthat’stheexperts.Theirforecastswillgiveyou clarity–andmaybealittlemoreoptimismthanyoumightexpect.

Whileamajordropisn’tonthetable,forecastersarecallingforamodestdeclineinratesinthe monthsaheadastheeconomicoutlookbecomesmorecertain.Basedontheinformationwe haverightnow,here’salookatwheretheysayratesshouldbebyyear-end(seegraphbelow):

Eventhisslightdecreaseisawelcomechange.Aseeminglysmalldeclinecanstillhelp bringdownyourfuturemortgagepaymentandgiveyouabitmorebreathingroomin yourbudget.

Justremember,everythingfrominflationtoemploymentandbroadereconomicshiftswillhavean impactonwhereratesgofromhere.So,don’ttrytotimethemarket.Anddoexpectsome volatilityalongtheway.

InventoryWillContinueToGrow

Inventoryhasalreadyimprovedalotthisyear.Abigportionofthegrowththemarkethasalready seenisbecausehomeownersaregettingtiredofsittingonthesidelines.Ifrateforecastspanout astheexpertssay,thatcouldbeenoughtotipsomemoresellersoffthefenceandbackintothe market–givingyouevenmoreoptionsforyourmove.

HomePricesAreModerating

Asmorehomeshitthemarket,therewillalsobelessupwardpressureonhomeprices.Expert forecastsarestillcallingforgrowth,butthepaceofthatgrowthisslowingdownasinventory climbs.Theaverageofall7forecastsshowspriceswillriseabout2%thisyear(seegraphbelow):

PercentAppreciationasof5/29/2025 2025HomePriceForecasts

Thatmeansyoucouldfinallygetalittlebitofrelieffromrapidlyrisinghomeprices.Whenyou combinetheforecastforhealthierpricegrowthwithprojectionsforslightlylowermortgagerates, thatcouldmeanmorebuyingpowerinthemonthsahead.

Keepinmind,though,thehousingmarketishyper-local.So,thisiswillvarybyarea.Some marketswillseepriceshigher.Andsomemayevenseepricesdipalittleifinventoryisup significantlyinthatlocation.So,leanonanagentforinsightsintowhat’shappeninginyourarea.

BottomLine

Let’stalksoyoucangetthescooponwhat’shappeninginourareaandadviceonhowto makeyournextmoveasmartone.

Averageof All7 Fannie Mae

CotalityHPESWells Fargo NARMBAZillow

HowChangingMortgageRates AffectYourMonthlyPayment

Expertssayrateswillcomedownslightlybytheendoftheyear–butsomevolatilityisexpected.

Averagemortgagerateswilldeclinemodestlybutremain above6percent,withlikelyboutsofvolatility.

So,youshouldn'ttrytotimethemarket.Instead,it'sbettertofocuson howevenasmallchangeimpactsyourfuturemortgagepayment.

TheTop2Buyer MistakesRightNow

Intoday’scomplexmarket,you’llwanttobesure youhaveadvicefromateamofprofessionals.If youdon’tleanonthepros,youmaymakesome costlymistakes.Herearethetop2otherbuyersare makingrightnowandhowyouragentandlender canhelpyouavoideachone.

1.BuyingMoreHouse ThanYouCanAfford

It’simportanttoavoidstretchingyourbudget toofar,especiallywhenotherhousing expenseslikehomeinsuranceandtaxesare ontherise.Andoneofthebestwaystogeta goodideaofyournumbersisbygetting pre-approvedbyalenderbeforeyoustart yoursearch.Thathelpsyouknowwhatyou canborrowforyourhomeloan,soyoucan determinearealisticpricepointyou’re comfortableat.Bankrateoffersthisadvice:

“Focusonwhatmonthlypaymentyoucan affordratherthanfixatingonthemaximum loanamountyouqualifyfor.Justbecause youcanqualifyfora$300,000loan doesn’tmeanyoucancomfortably handlethemonthlypaymentsthat comewithitalongwithyourother financialobligations.”

73%faster

BottomLine

2.MissingOuton AssistancePrograms

Savingupfortheupfrontcostsof homeownershiptakessomecarefulplanning. Youhavetothinkaboutyourclosingcosts, downpayment,andmore.Andifyoudon’t workwithateamofexperienced professionals,youcouldmissouton programsouttherethatcanmakeabig differenceforyou.Thisishappeningmore thanyourealize.

AccordingtoRealtor.com,almost80%of first-timebuyersqualifyfordown paymentassistance–butonly13% actuallytakeadvantageofthose programs.

Talktoalenderaboutyouroptions.Whether you’rebuyingyourfirsthouseoryourfifth, theremaybeaprogramthatcanhelp.

Thegoodnewsisyoudon’thavetodealwithanyoftheseheadaches,ifyouhavetheright partnerbyyourside.Let’sconnectsoyouhaveaprowhocanhelpyouavoidthesecostly mistakes.

ThingsToAvoid AfterApplying foraMortgage

Oncealenderhadreviewedyour financesaspartofthehomebuying process,youwanttobeasconsistent aspossible.

Don’tchangebankaccounts.

Don’tdepositcash intoyouraccounts beforespeaking withyourbank orlender.

Don’tapplyfornewcreditor closeanycreditaccounts.

Don’tco-signother loansforanyone.

Don’tmakeany largepurchases.

Thebestadvice?Onceyou’vedoneyourmortgageapplication,always talktoyourlenderbeforedoinganythingfinancialinnature.

5ReasonsYouNeedanAgent WhenBuyingaHome

Whenitcomestobuyingahome,expertadvicefromatrustedrealestateagentispriceless,now morethanever.Andhere’swhy.Arealestateagentdoesalotmorethanyoumayrealize.

Youragentisthepersonwhowillguideyouthrougheverystepwhenbuyingahomeandlookout foryourbestinterestsalongtheway.Theysmoothoutacomplexprocessandtakeawaythe bulkofthestressofwhat’slikelyyourlargestpurchaseever.Andthat’sexactlywhatyouwant anddeserve.

ThisisatleastpartofthereasonwhyasurveyfromBrightMLSfoundanoverwhelmingmajority ofpeopleagreeanagentisakeypartofthehomebuyingprocess(seevisualbelow):

Ofrespondentsagree"Itwouldbe verystressfultonavigatethe homebuyingprocesswithouta realestateagentorbroker.”

Ofrespondentsbelieve "Arealestateagentorbroker isanessential,trusted advisorforahomebuyer."

1.DeliverIndustryExpertise:Therightagent–theprofessional–willcoachyou througheverythingfromstarttofinish.Withprofessionaltrainingandexpertise,agents knowtheinsandoutsofthebuyingprocess.Andintoday’scomplexmarket,thewayreal estatetransactionsareexecutedisconstantlychanging,sohavingexpertadviceonyour sideisessential.

2.ProvideExpertLocalKnowledge:Inaworldthat’spoweredbydata,agreatagent canclarifywhatitallmeans,separatefactfromfiction,andhelpyouunderstandhow currentmarkettrendsapplytoyouruniquesearch.Fromhowquicklyhomesaresellingto thelatestlistingsyoudon’twanttomiss,theycanexplainwhat’shappeninginyour specificlocalmarketsoyoucanmakeaconfidentdecision.

3.ExplainPricingandMarketValue:Agentshelpyouunderstandthelatestpricing trendsinyourarea.What’sahomevaluedatinyourmarket?Whatshouldyouthinkabout whenyou’remakinganoffer?Isthisahousethatmighthaveissuesyoucan’tseeonthe surface?Noonewantstooverpay,sohavinganexpertwhoreallygetstruemarketvalue forindividualneighborhoodsispriceless.Anofferthat’sbothfairandcompetitiveintoday’s housingmarketisessential,andalocalexpertknowshowtohelpyouhitthemark.

4.ReviewContractsandFinePrint:Inafast-movingandheavilyregulatedprocess, agentshelpyoumakesenseofthenecessarydisclosuresanddocuments,soyouknow whatyou’resigning.Havingaprofessionalthat’strainedtoexplainthedetailscouldmake orbreakyourtransactionandiscertainlysomethingyoudon’twanttotrytofigureouton yourown.

5.BringNegotiationExpertise:Fromoffertocounterofferandinspectiontoclosing, therearealotofstakeholdersinvolvedinarealestatetransaction.Havingsomeoneon yoursidewhoknowsyouandtheprocessmakesaworldofdifference.Anagentwill advocateforyouastheyworkwitheachparty.It’sabigdeal,andyouneedapartnerat everyturntolandthebestpossibleoutcome.

Bottom73%fasterLine

Realestateagentsarespecialists,educators,andnegotiators.Theyadjusttomarketchanges andkeepyouinformed.Andkeepinmind,everytimeyoumakeabigdecisioninyourlife, especiallyafinancialone,youneedanexpertonyourside.Expertadvicefromatrusted professionalispriceless.

Thecomplexitiesofthecurrentconditions meanthat,nowmorethanever,it’ssmartto leanontheguidanceofanexperiencedlocal realestateagent.Ifyouwanttoenterthe housingmarketin2025,whetherasabuyer oraseller,letaproleadthewayforyou. Bankrate