Clearwater Florida Owning verus Renting

Clearwater Florida – One popular housing theory is that — before a bona fide housing recovery can begin — the cost of owning a Clearwater home versus renting one must return to historical levels.

If that belief is a truth, a national return to rising home prices may be in store for 2009.

Falling home prices coupled with falling mortgage rates, too, have dropped the relative, after-tax cost of owning a home to 125% of the cost of renting a home.

This is the exact 18-year historical average and not since 2001 has the gap been this small.

As reported by the Wall Street Journal, though, the study has some flaws. For example, the data doesn’t account for ongoing home maintenance costs, nor does it consider real estate tax bills and insurance policies.

But, combining a relatively low cost home of ownership in the Tampa- St Petersburg – Clearwater real estate market right now. NAR reported that the median home price was $151,500 in the 4th Quarter of 2008 which represents a  decrease of over 24.9% in 2008 along with the government’s newly announced $8,000 tax credit for first-time home buyers is likely to convert long-time Tampa Bay renters into never-before homeowners. We’ve been meeting with lots of buyers convinced now is the time to buy their first home.

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This, too, is thought to be a key element of the housing recovery.

In many real estate markets (but not all), home prices are expected to edge lower through 2009. Provided mortgage rates stay low, the cost gap between owning and renting will shrink even more.

Thinking of Buying your First Home in Clearwater Florida – We can help

If you have been thinking about buying your first home or condo and haven’t owned one in the last 3 years now is a great time to buy in home in Clearwater

Contact us for a FREE quote and to find out your Tampa Mortgage options and you can search all Tampa St Petersburg and Clearwater homes for sale right now..

Call Us Today at (727) 710-8036 to hear more about how we can help you!

Copyright © 2009 Jack and Cyndee Haydon, Clearwater REALTORS and specializing in Clearwater Florida, Clearwater Beach Florida, Sand Key Florida and Pinellas County Waterfront homes and condos. This article may not be copied, reproduced, distributed, transmitted, displayed or published.

(Image courtesy: Wall Street Journal)

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7 Comments

  1. Great article, I think now is a good time to invest in real estate (not sure though if prices will continue to fall).

  2. This is fantastic news not only for Clearwater, but for the nation as a whole. I am hopeful 2009 will end on a high note, propelling the real estate market for positive gains in 2010.

    Great information on this blog; thanks for sharing.

  3. Jack and Cyndee, I read posts like these so I can better understand what is happening in real estate in other areas. At this point I am thankful that the Austin, TX area has not seen the drops in median home sale prices that Clearwater, FL has seen.The NAR report showed that the Austin/Round Rock area showed a quarter-to-quarter change (2008 vs. 2007) of -0.1%. Sales have definitely slowed, but we are still relatively stable. Hopefully first-time buyers will take advantage of the tax credit and low interest rates there and here!

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  5. Having a house and having it in Florida’s clear water is everybody’s Dream. It is really a great place a great to have a revovery.
    I think the recovery process is over for now and the process of growth has began in the market already. Good post that brings cheers from a lot of people because we all Love Florida and its clear water..

  6. You would be foolish to buy in Florida in the next few years. The posting are almost a year old and they said it was getting better, guess what it got worse and still will.

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