Conventional wisdom dictates that homeownership offers residents the freedom to modify their properties as they see fit, while renting forces individuals to sacrifice this ability in return for lower monthly prices. But, in 2012, this paradigm might not ring as true as it once did.
According to real estate search website Trulia.com, renting is more expensive than owning a home in about 74 percent of major U.S. cities. As homeownership continued to decline and demand for rental properties surged, rent prices reached a five-year high in 2011. The year ended with a 2.5 percent increase from December 2010 levels to December 2011 levels.
According to Zillow.com, buying a home in Utah costs a borrower an average of $199,990. This figure is down significantly from late 2008, when the average home price was $275,000, but up marginally from the average price of $190,000 in April 2008. It appears home prices have begun to rebound in Utah, so time may be running out for buyers to acquire home loans in Utah at a depressed rate.
A Utah mortgage company may be able to help homebuyers to find bargains on homes. With economic conditions still improving, some individuals may not be able to account for the higher costs of living that may come with renting.
Particularly among Utah first-time homebuyers, who may not have the economic clout of more established U.S. consumers, buying may be more economically feasible than renting. Although young people generally rent before they own a property, this does not always need to be the case. A local real estate agent should be able to help these potential owners through the financing process.
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