CoreLogic takes a look at a question on many people’s minds these days: Is it still a good time to buy a home? With home prices forecasted to increase by 5% in 2016 and the Federal Reserve expected to raise interest rates, the answer is not so simple.
To find an answer, CoreLogic chose 30 Core Based Statistical Areas across the country based on its Multiple Listing Service coverage since 2005.
According to CoreLogic MLS data, rent didn’t drop significantly during the crisis, and it has continued to increase as home prices have increased after the crisis. The median home price reached a new peak in June 2015, 3.5 percent higher than the pre-crisis peak and 40.5 percent higher than the trough in January 2008. Rent was more stable during the crisis because a number of households lost their homes to foreclosure.
But starting in 2012, rent prices began to increase, following the home price trends with lags of one to two months. As the housing market continues to heal and the number of homes for sale remains low, the rental market is likely to remain robust over the next few years.
To find out more on CoreLogic’s findings, read more: