It doesn’t happen very often where, in a compact period of time, I see a wealth of reliable data released that shed such sunny light on the decision to buy a home in the Twin Cities but lately that has been the case. If you’ve been contemplating such a decision, here are 3 great reasons to feel good about your decision and its timing in ascending order.
Reason 3: CNBC Ranks Minnesota as a Top State for Business.
CNBC’s announcement may seem boring, and it definitely is, but from the perspective of a homebuyer or homeowner, it’s critical. This is because we’ve seen how a local unemployment rate is often tied to the value of homeownership. Here’s a recent illustration:
If this economy is generally considered to be a recovering, I can’t wait to see just how good this can get for the Twin Cities.
Reason 2: Minneapolis and St. Paul are the 3rd and 4th Ranked Cities for “Best Cities for Quality of Life” by NerdWallet Finance.
NerdWallet recently announced a ranking of 100 major cities. Their methodology was unique in that it focused on, “income and health benefits, local economic strength, as well as work-life balance to find the best places for quality of life.” Minnesota and Nebraska were the only two states to have two cities represented in the top 10.
Reason 1: It’s Officially Unaffordable to Rent in Almost All Major Cities.
I’ve seen people bend statistics in nearly any market to make the case for homeownership but when Zillow points out that, “homes remain more affordable to buy in 94 of the country’s 100 largest metros,” that “renting is more expensive than ever in 88” of them and the Secretary of Housing and Urban Development confirms this calling it the “worst rental crisis in this nation, ever” then it’s fair to say there’s something meaningful in the numbers.
The best way to illustrate this is an analysis of the Net Cost of Homeownership. While you can run your scenarios using market rates, PMI calculators (mobile apps are better) and taxes from home listings using this calculator, comparing the median rent to a monthly payment on a typical purchase of a median home really drives the Twin Cities rent vs. own point home:
A decision to buy a home is deeply personal and your personal reasons should ultimately dictate the decision of when and why to buy a home but if your time is now, hey, . . . . doesn’t it feel good to be smart?
Charles Dailey – NMLS 79048 – Branch Manager, Loan Officer, Certified Military Housing Specialist
The Home Buyers Scouting Report® is provided directly to the buyer by HBM II, a licensed national real estate brokerage service company, not to or through a lender. The FREE home finding service is provided directly to prospective homebuyers by HBM II and its real estate brokers, as part of their ordinary real estate brokerage services. HBM II, Inc. works cooperatively with other real estate agents across the United States in attempting to find ready, willing and able buyers for homes listed for sale. The role of the Preferred Loan Officer is to assist in determining a comfortable home price range for Home Buyers Marketing II, Inc. (HBM II) to use when it is searching for property listings within the buyer’s search criteria.