RENTING VS. BUYING
With the changing of economies in the housing sector over the past half dozen years, many wonder, “How does that affect my decision to rent vs. buy a home? Is renting a better bet? If not, is now a good time to buy?”
According to a new analysis by Zillow the “Breakeven Horizon” in seventy-five percent of the U.S. cities they studied is less than three years. In other words, a homeowner would be financially ahead by buying a home compared to renting that same home if they remain in the home for more than three years. The study included 7,500 U.S. cities to determine how many years it would take before owning a home becomes more financially advantageous than renting the same home. All possible costs associated with buying and renting were incorporated into the analysis, including down payment, mortgage, rental payments, transaction costs, property taxes, utilities, maintenance costs, tax deductions and opportunity costs, while also adjusting for inflation and forecasted home value and rental price appreciation.
The 7,500 city study included many neighborhoods in the Tacoma-Seattle marketplace, too. Luxury markets, such as Hunts Point and Medina in the Bellevue/ Eastside area reported a “Breakeven Horizon” of upwards of 20 years. By comparison, the Pierce County market, which included Tacoma (2.8), Spanaway (2.3), Puyallup (3.0), Gig Harbor (4.9) and others, averaged a “Breakeven Horizon” of approximately 3 years. In other words, after 3 years you are money ahead to buy a home in Pierce County compared to renting.
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Broker's Corner 2/4/12
“2012 will be the year that residential brokerage climbs out of the hole of the last six and a half years.” This statement by REAL TRENDS, the leading national analytics firm for real estate, was reported in their January 2012 publication (Volume XXVI, Number 1, www.realtrends.com, January 2012).
REAL TRENDS went on to say, “The November REAL Trends Housing Market report shows that closed transactions were up for the fifth consecutive month in a row over the same months last year and for the first time the annualized rate of closed units was also up from the previous month of October 2011.”
But the most interesting part of the article is what they projected about the future for real estate companies: “Firms with two or more core services [LIKE COLDWELL BANKER BAIN] are seeing transactional performance nearly 50 percent better than those without.”
In today’s real estate environment hiring the best real estate company is tantamount to successfully selling your home. Clearly the brokers at Coldwell Banker Bain are the most highly trained in the industry and they are supported with more core services to serve our customers than any other firm in the marketplace.
If you are thinking of buying or selling a home, why not hire the best: A Broker from Coldwell Banker Bain!
TASHA PASCO TO MANAGE CB BAIN'S PUYALLUP REAL ESTATE OFFICE
BELLEVUE, Wash. (January 9, 2012) - Coldwell Banker Bain (CB Bain), a leading provider of real estate brokerage services in Western Washington, today announced the hiring of Tasha Pasco as principal managing broker of the company’s office in Puyallup, Wash. Pasco has worked in real estate for 24 years and is a certified real estate clock hour instructor with the state of Washington. She also has a background in commercial and investment real estate. Branch manager for Skyline Properties’ Pierce county office for the past six years, Pasco will assist CB Bain’s Pierce County management team in oversight of its six offices, including locations in Tacoma, Puyallup, Gig Harbor and Port Orchard.
“We’re very happy to have Tasha joining our team,” said Mike Grady, president of CB Bain. “She is extremely well-regarded in the Pierce County real estate community and will be an exceptional asset to our management group.” Grady noted that with her certification as a real estate instructor, Pasco will “fit right in with our other branch managers who are thought-leaders in our industry and regularly train our brokers as well as those from other companies.”
“I’m thrilled to be working with the professional brokers at CB Bain–Puyallup,” said Pasco, “and I look forward to learning their individual businesses from the inside out." She went on to say that she is "excited to share CB Bain’s progressive tools and technology in supporting the brokers and their clients.”
Pasco will join Bob Call, CB Bain’s regional managing broker, and Dave Bastian, principal managing broker for the Gig Harbor and Port Orchard offices, in overseeing the company’s operations in Pierce County. “We're lucky to have Tasha with us,” said Call. “I’ve worked with her for a number of years; her knowledge and professionalism are unsurpassed. She’ll be a great resource for our Puyallup brokers and for their buyers and sellers as well.”
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About Coldwell Banker Bain
Since 1906, the Coldwell Banker® organization has been the premier provider of full–service real estate. The Coldwell Banker system has nearly 3,200 residential and commercial real estate offices with over 87,000 sales associates globally. The company is an industry leader in residential real estate, new homes, and luxury properties. For the past 40 years, this legacy of success has been carried on in the Pacific Northwest by Coldwell Banker Bain. Operating as Coldwell Banker Bain in Western Washington and as Coldwell Banker Seal in the Portland/Vancouver metropolitan area, the company is perennially one of the top two Coldwell Banker affiliates in the world and is number one in the West. Coldwell Banker Bain consistently ranks among the Top 20 Real Estate Companies in the nation as cited by Real Trends and RIS Media’s Real Estate.
Getting the “Bargain”
Predicting home prices is indeed challenging. Buyers are often confused about what projections they can rely on. This confusion sometimes leads to indecision. Some homebuyers today are hesitant to act; instead they wait on the sidelines to see if prices will continue to fall. However, waiting for the “bargain” may not be a bargain at all. One critical factor buyers sometimes overlook is the affordability of a home. Buyers know that lower interest rates are better but most are surprised to know how much a lower rate affects the monthly affordability of a home. Here is an example using today's home prices and low rates versus the same home discounted by 6% but with a 1% and 2% interest rate increase:
$400,000 home at 4.5% interest = $1,500 monthly principal/interest payment.
Now compare the same home discounted by 6% but with 1% and 2% rate increases:
$376,000 home at 5.5% interest = $1,723 monthly principal/interest payment ($223 increase);
$376,000 home at 6.5% interest = $2.036 monthly principal/interest payment ($536 increase).
As you can see, waiting for that “bargain” is not a bargain when interest rates are rising. Unfortunately, rising interest rates are the projection. If you are looking for that “bargain” now is the time to get it.
There are many other factors that influence the decision to buy or sell real estate. For help with your decision, contact a Coldwell Banker Bain agent today to get objective accurate information and without obligation. Let us put our knowledge on your side.
Coldwell Banker Bain, Gig Harbor & Kitsap Regional Office
Coldwell Banker Bain Gig Harbor
6565 Kimball Drive, Suite 101
Gig Harbor, WA 98332
Coldwell Banker Bain Port Orchard
2021 Sedgwick, Road SE, Suite #1,
Port Orchard, WA 98366