Renting v. Buying Trends

According to Lawrence Yun, Chief Economist of the National Association of REALTORS, “rents spiked 3.6 percent” this past August over the same time a year ago, making it the fastest “pace since 2008” (REALTOR Nov/Dec 2015). A trend such as this usually drives the market demand for home buyers, especially first-time buyers. However, states Yun, the first-time market is trending at “30 year lows,” because rent increases are “outpacing wage gains,” making it difficult to save for down payments (REALTOR Nov/Dec 2015). Another factor, says Yun, is that existing home prices are rising as a result of the new construction downturn. Until the future of new construction is clear, says Yun, “home prices and rents will continue to rise” (REALTOR Nov/Dec 2015).

Buying in an area where the existing home inventory is sparse, known as a seller’s market, one can expect an inventory of rising prices–the law of Supply and Demand. Of course, buyer’s markets still exist in pockets across the United States, one of which is here in Tryon NC, despite a slight slowdown of new listings. For a while in the very recent past, the housing market in Tryon was flooded with new listings, causing a glut of existing inventory without enough buyers. Things are slowly improving, but most likely will never return to the boon years of 2005 to 2007. Encouraging as some recent bidding wars have been–good to have them back again–the numbers of them have been minuscule in comparison to those in the boon years previously mentioned.

As always, though, Tryon NC remains a great place to live, work, play, raise a family and retire.  Snowbirds have found it as have those escaping the heat of much warmer climates, so plan a visit today and see for yourself why it is “Nearly Perfect, Always Tryon”.  While in Tryon visit RE/MAX Advantage Realty, the “Hometown Experts,” and let them guide you along your way.