One of the many websites that tracks real estate activity across the nation, Trulia, recently released a report comparing the virtues of buying versus renting a home which was picked up by Inman News. The report states that if a city is ranked 1 to 15, then it is cheaper to buy versus renting. If a city is ranked 16 to 20, then it’s likely that buying a house is cheaper but it will depend on individual circumstances of the buyer, and anything above 20 is an area where renting is still cheaper overall.
You can access the full article via this link.
Seattle is ranked 19 in 2Q2011, having dropped from a 24 in 1Q2011.
With expectations being that outlying areas of the Seattle/Bellevue metro area will be continuing to see some pricing declines as banks continue to move out REO (real estate owned) inventory and we see short sales and foreclosures continuing. Unemployment and fear of unemployment is stagnating purchases but we’ve also seen an uptick in investor purchasing as those with cash and the ability to use credit see now as a great time to take advantage of the continued low interest rates and lower prices. This next linked article speaks to current interest rates (around 4.78% as of April 28, 2011) and activity in that area.
Certain areas of Seattle and cities like Bellevue have many areas that are beginning to stabilize but outlying areas where there was available buildable land are continuing to see declines because inventory is outpacing buyer demand. Only those homes that are in prime condition and aggressively priced are seeing fast selling movement in this market. Pay attention, sellers!
For those of you thinking about buying, take a close look at your situation and take into account all the factors before making a decision. It’s a pretty expensive purchase to decide on quickly, but for many it’s a sound purchase that will bring many years of comfort, joy and happy memories of home.
