The Market is Shifting – Here is what you need to know
If you’re on the fence about whether you should rent or buy a property, here’s some updated information to help make your decision. rents are high and continue to rise while house prices are stable or have even decreased in some neighborhoods. Although it may be more costly upfront to buy a property, you’ll likely see greater long-term savings by owning rather than renting. Do the math and see what makes the most sense for your specific circumstances.
Miami Local Trends
Rent prices in Miami have been skyrocketing, making it increasingly difficult for residents to find affordable housing. The rent for a typical two-bedroom apartment in the city now averages more than $2,000 per month, and many people are being forced to move to less expensive areas and unless something changes soon, rent prices in Miami will continue to climb, making it even harder for residents to make ends meet.
Should we expect house prices to depreciate?
Also key to the decision is what is anticipated to happen with house prices in the coming years. The answer to this forecast depends on who you ask. While we are experiencing a market cool down, some experts predict we still will see slight appreciation in home prices while others predict as much as a -4% depreciation. This will be very much influenced by interest rates behavior. It is very important to note this past week we saw a DECLINE in rates as inflation finally started to ease
The good news is that home prices are expected to return towards more normal levels of appreciation rather quickly. The latest forecast from Wells Fargo shows, while they feel like we’ll see a slight fall in 2023; by 2024 net positive 3% which is definitely a healthier and more sustainable behavior.
So, what’s the verdict? Should you rent or buy in today’s market?
The answer really depends on your personal financial situation and preferences. If you can afford to make monthly payments on a home, it may be wiser to purchase one – especially if interest rates stay low. However, if you don’t think you will be in the same place for more than five years, renting may be the better option. Keep in mind that rents are increasing at a faster pace than house prices, so if you do decide to rent, make sure to budget for potential increases down the road.