Sarasota, Florida (PRWEB) November 27, 2012
The increasing cost of home rentals has added further luster to the bullish outlook for the housing market, Sarasota Bay Real Estate said in press release. The full service realty firm noted a study conducted earlier this year showing that a home purchase has become more affordable now than renting in almost every major area across the United States because of sharp increases in home rental rates and growing affordability of residences.
Sarasota, Florida, led metro areas which registered the highest rent increases, according to a survey conducted by San Francisco-based firm Trulia that has been listed at the New York Stock Exchange (NYSE) just this October. The study, which covered a twelve-month period through March 2012, showed that the average rent in Sarasota rose by nearly 13 percent on a year-on-year comparison. The next biggest increases were registered in Miami and San Francisco, with rental hikes of 12.1 percent and 11.1 percent, respectively. Double-digit percentage hikes in rental rates were likewise registered in several other metro areas.
The average rate for all types of rental homes was at $1,350 a month in March 20012, up from a median of $1,285 a month a year earlier, Trulia estimated. Accelerated demand for home rentals and limited supply form as the common thread that led to spikes in rental costs. At the current levels of rental costs, the firm concluded that home ownership would be cheaper by an average of 45 percent. In one estimate, savings of as much as $514 per month for five years can be realized with home ownership compared to renting.
Vacancy Rate Hits Low
Meanwhile, a separate study by the real estate research firm Reis Inc. showed that the national vacancy rate for apartment in the 2012 first quarter was at its lowest level since late 2001. For the quarter, the rate dropped 0.3 percentage points to 4.9 percent. Upward pressure on costs for all rental types resulted from such a limited supply. This pressure was most profound in places where a high number of foreclosures were recorded, as the displaced homeowners have to move to a new residence somewhere, the research firm said.
Going by this logic, Sarasota Bay Real Estate expects the cost of renting to continue rising in the Sarasota area, noting the reported sharp increase in foreclosures in the locality this October. For the month, 740 foreclosures were filed in Sarasota County, up 34 percent from this September. Similar spikes were observed in Manatee and Charlotte counties, where filings of foreclosures were up 82 percent and 16 percent, respectively.
Sarasota Bay Real Estate said that current mortgage rates favor those renters who believe they are now ready to become homeowners. With such lending rates trending at a low 3.5 percent, buying a home makes more sense than renting, the realty firm added. A consultation with a realtor with an in-depth knowledge of current sources of affordable financing is one initial step that renters aspiring for their own home should now take, Sarasota Bay Real Estate said.
About Sarasota Bay Real Estate
Sarasota Bay Real Estate is a full service real estate brokerage in Sarasota Florida owned by Sarasota real estate broker, Christina Miller, and marketing professional, Roy Hunter. Together they, and their team of well-experienced agents, provide some of the highest quality real estate marketing services for the properties in the company’s inventory. Sellers of Sarasota Florida real estate choose Sarasota Bay Real Estate due to their reputation of going above and beyond expectations when marketing properties located in the Sarasota-Manatee County areas as well as the company’s vast Internet marketing reach. Sarasota Bay Real Estate Internet assets receive more than 1,000 visitors a day and this exposure contributes greatly to a property selling quickly and for the highest price. When property marketing strategies are paramount in sellers listing requirements, Sarasota Bay Real Estate is the clear choice in the Sarasota real estate market.