DALLAS — I told you a while back how experts expected mortgage rates to rise considerably in 2022. But the thinking was that it would be spread out over time.
Instead, rates have shot up considerably right out of the gates.
I keep getting the question ‘should I buy now, or just sit out and keep renting’? Obviously, that is always a personal decision.
But Realtor.com just came out with some info that might help you make up your mind. The website's January data shows Dallas-Fort Worth rents have blasted upward, increasing by 24.9% in one year. That’s similar to what we have seen in home price appreciation in many parts of North Texas.
Here’s the thing though: rental vacancies have been dropping over the last year. Less supply means more demand, which may mean more rent increases.
Realtor.com surveyed landlords, and 61% of them plan to raise rent by 5% to 10% in the next 12 months.
In 2022, Realtor.com expects rents to rise nationally by an average by 7.1%, while they expect home prices here to rise by a more modest 4%. Though bidding wars – which are dramatically driving up home prices – are still happening here.
Realtor.com has a calculator that may help you decide between renting and buying. It comes down to how long you plan to live here. You plug in how much a home costs, how much you would put down, and how much you might be paying in rent. Then, the program tells you how long it would take for buying to become less expensive than renting.