The 2017 Housing Market: Should I Rent or Purchase?

By Phil Bost

The jump from renting to buying is a huge milestone in life. Ever since the Subprime Mortgage Crisis of 2008, trends and predictions have flowed about who will buy, when and if Millennials will buy, and how long it will take the market to settle back down. Those interested in buying or renting out property in 2017 will want to look at the financial forecast of the housing market for the coming year. Experts in economics have predicted an overall steady housing market for the next year. While the close of 2016 should not be majorly affected, trending housing demands, the beginning of President Trump’s term, and a hike in interest rates will likely create a slower but still rising year. As always, whether you buy or rent will depend on a few factors, including your age, financial situation, and distance you are willing to move. Here are a few tips as well as explanations of the market predictions that will help you determine whether you should rent or purchase a unit in 2017.

  1. Consider Your Location to Buy. Ask yourself: Where are you willing to move? Housing price is all about location, location, location. Some cities are seeing higher demand and rising home prices while towns on the fringes slowly develop. If you are looking for a home in a particular area, it is best to consult an experienced realtor in the field who knows the area. Many people find realtors through word of mouth, but there are also websites that will match you with a realtor. A realtor who knows the area will match your needs with the best prices and will be able to give you financing tips that will suite you. If you are more open to locations out of the city or state, you might find more prime options. Housing markets in cities like Denver, Colorado; Seattle, Washington; Richmond, Virginia; Tampa, Florida; San Diego, California, and many more are attracting investors and might be good options to find a home. If you are willing to move out of state, research different cities to determine which lifestyle is right for you, and whether the job market is growing or stable in your field of work (unless you are flexible on that term).
  2. Stick to a Budget. The 2008 Subprime Mortgage Crisis sobered up the public as well as the banks and federal government about affordability. If you feel in over your head about mortgages, fixed interest rates, and what your monthly budget can sustain in this rising market, then it is wise to consult with your realtor. Again, a realtor should be able to simplify the terms based on your income and expectations. It is easy to fall in love and romanticize your life in the beautiful new home you just saw, but don’t be fooled: if it is out of your budget along with your other monthly expenses, …read more