Follow Rent Rates to Predict Housing Prices

In this buyer’s market, along with the first-time home buyer’s tax credit stimulus, many people are finally able to take the plunge into home ownership. But for some, the waiting game seems to be paying off because, depending on the market, while some home prices are slowly creeping back up, some continue to drop. So in this stock market-type game, how do you know which way home prices are going in your neighborhood? Are there any indicators you could watch for to potentially give you a leg up?

Keith Vermilyea blogs about what you should be paying attention to if you want to get a better idea of which way home prices may be going.

“Traditionally, people have been willing to pay a modest premium to own a home rather than rent it. Recent studies report that in 1999 rents averaged 87 percent of the after-tax mortgage payment for houses and condos of similar size in the same neighborhood.

With historically low mortgage rates, plus the home buyer tax credit, this could be a great time to be buying or selling.”

Keith Vermilyea says that paying attention to rental rates in your area could serve as a good barometer as to which direction home prices may be headed in a neighborhood. If rental rates are going up, home prices will soon follow. Call me today for your free pre-approval. This way you will be armed and ready to purchase your home before it is too late~!!!!

Tags: Barometer, Direction Home, First Time Home, First Time Home Buyer, Great Time, Home Ownership, Low Mortgage, Mortgage Payment, Mortgage Rates, Paying Attention, Plunge, Pre Approval, Rents, S Market, Stimulus, Stock Market, Tax Credit, Time Home Buyer, Type Game, Vermilyea, Waiting Game

This entry was posted on Monday, March 1st, 2010 at 8:47 am and is filed under News & Developments, Real Estate & Mortgage. You can follow any responses to this entry through the RSS 2.0 feed.