Consumers decide whether to Rent or Buy by City

How does this affect relocating employees?

We’ve all noticed a change in market values which has affected a transferee’s ability to sell and buy a home in cities across the county. Due to decreased home values, many homeowners are forced to rent their home in the origination location and rent a home in the destination location as well.

A new index compiled by Trulia.com shows that it’s becoming much easier to tell whether the time is right for an owner to rent or buy a home in locations across the county.

With approximately 30% of its site visitors debating the rent or buy question, the company created an index of 50 major cities that weighs the financial merits. Although, not the typical transferee’s property, using a typical two-bedroom condo or townhome listed for sale on Trulia.com, economists calculated criteria for renting, including rent and renter’s insurance. Read More…

Relocating employees may have additional benefits from their company to sell their home in the origin location, but the benefit may not be enough to release them from their obligation. In this instance, a broker may encourage a homeowner to seek the advice of their lender to determine if they are eligible for a short sale.

If a homeowner is successful relocating to a new destination they may choose to rent for a year or more before considering a purchase. With federal home buying incentives gone, consumers have only local market conditions and mortgage interest rates to guide them in determining the merits of buying.

Relocation Review/August 16, 2010

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