After taking a look at the MLS and the buyers that we have seen at our listings and open houses over the past month it seems that renters are finally getting off the fence.
Many of the renters I spoke to don’t want to renew their leases and are looking to buy. In fact, when I took a look at the MLS, the number of people renting has decreased every month for the past 3 months.
As a sidenote, landlords have decreased their asking prices in response to this shift in the market.
Another thing that makes me believe renters are starting to buy is the fact that the number of pending and closed sales under $1,000,000 has increased dramatically in the last couple months (as opposed to the beginning of the year where most of the closed sales were between $1,000,000 – $2,000,000). I believe that overall renters tend to enter the market at lower price points and that is why we have seen more sales under $1,000,000.
There is a great article in the New York Times by David Leonhardt about renting vs. buying and the “rent ratio”, a simple way to calculate the costs and benefits of renting vs. buying. View it here.