Most renters dream of homeownership as rental rates climb

A majority of renters say homeownership is one of their highest priorities for the future and they are thinking more about purchasing a home now than in past years, reveals a new survey by the National Association of Realtors. Given that information, it shouldn’t come as a surprise that the survey also found that Americans overwhelmingly believe owning a home is a good financial decision.

“Renters are increasingly recognizing the benefits of homeownership,” says Orlando Regional Realtor Association Chairman Steve Merchant, owner-broker of Global Realty International. “In addition to its many social benefits — such as providing a stable, safe environment — the financial benefits of owning a home are even more apparent to renters now. Nationwide, it’s an average of 41 percent cheaper to own than to rent! Homeownership also is one of the best ways to build financial security over the long term. In most cases, the benefits of homeownership far outweigh the benefits of renting.”

The NAR’s 2013 National Housing Pulse Survey, which measures consumers’ attitudes and concerns about housing opportunities, found that Americans’ outlook on the housing market is improving. Nearly four in 10 Americans (38 percent) identified an increase in activity within their local housing market in the past year, compared to just 22 percent that reported a slowdown in activity. Respondents were also less concerned than in the past about the drop in home values and foreclosures.

The survey also found that more than two-thirds of those surveyed said now is a good time to buy. “It’s a seller’s market in our low-inventory area, which makes it challenging for buyers,” says Merchant. “However, that doesn’t mean there aren’t still opportunities for buyers. Home prices are still very affordable for the typical buyer.”

There are a few basic tips for renters or move-up buyers looking for a new place to call home. First, know your credit history and understand how the credit system works. Next, do your financial research and get prequalified for a loan. Home inventories are low and sellers often receive multiple bids, so it’s imperative to be ready to make an offer quickly. Finally, determine a priority list for what you need and want in a home, so that you know it when you see it.

Most importantly, contact a Realtor to assist you in your home search and purchase. Realtors are the most trusted resource for real estate information and can give buyers the advantage they need in today’s market.