It has long been said that buying a home is much better than renting. And so, people began buying and home prices began to rise. When the economy went south, the shift in power of buy v/s rent was forced due to the number of foreclosures. All of those poor families had to have somewhere to go and renting was their only option.
Staying true to history, supply and demand soon caused the price of renting to climb even as home prices began to fall. Dizzy yet? Well hold on to your chair because the shift in power is coming once again. Moody’s chief economist Mark Zandi expects the trend to reverse this year in many major cities. “By mid 2011 and certainly by end of 2011, buying will be superior to renting in most parts of the country,” Zandi says.
Although experts feel that this power shift is inevitable, we will still have the dark cloud of unemployment hanging over our heads. So even though the price of homes continue to fall, it will do little good if no one can buy. But for those who can buy, doing so may prove to be a very lucrative investment in the long run.