Rising rents could spark greater interest in homeownership
Finding affordable housing is no easy task. The chore becomes an even greater burden when rents continue to rise in many neighborhoods across Orange County and competition for a quality apartment becomes tough. Those tired of paying increasing rent without feeling as if that money is going toward a long-term investment may want to consider checking out the MLS listings in Orange County.
Rent prices are rising to an all-time high
Locating an apartment is hard for many locals. However, recent figures concerning apartment inventory levels, housing demand and rising prices indicate that the chore could soon become even more difficult. The Orange County Register reports that apartment rents have reached an all-time high. The average large-complex tenant paid approximately $1,628 a month for an apartment.
"It"s crazy, rents going up," carpenter Rudy Reyes of Anaheim told the news source. Reyes currently pays $1,300 a month for a two-bedroom unit he shares with his wife and four daughters.
"There's no way I can afford a three-bedroom. That’s $1,700," Reyes said.
The news source claims that renters paid $24 more a month in summer 2012 in rent than they did last spring, and $73 more in a year-over-year comparison.
Affordable housing available in Orange County
Before determining whether buying or renting is the right decision, potential homebuyers should examine the local housing market. According to real estate market research firm DataQuick, the median price for a home sold in September 2012 in Orange County was $450,000 - 5.9 percent higher than the median cost recorded in September 2011.
New homes achieved the highest median home price increase in September. The source claims that the median cost of a new house was $679,000 - a 16.6 percent increase in a year-over-year comparison, the source claims. Resale properties had a median price of $510,000 based on 2,677 home sales. The price increased 5.9 percent from September 2011 to September 2012 and the number of home closures rose by 6.7 percent.
For potential homebuyers looking for a slight step up from renting, but who are not ready for homeownership, purchasing a condominium could offer a solution. According to DataQuick, the median price of a condominium in September 2012 was $305,000. The cost of this type of housing also increased in a year-over-year comparison by 14.2 percent.