Despite exorbitant home prices, expert believes now is the time to buy
MIAMI - An analysis done by Global Commercial Real Estate Services reports the cost of buying a home is at its most extreme since 1996.
That struggle is being felt by one local perspective homebuyer who tells CBS News Miami's Chelsea Jones, that trying to find a property in this market is challenging.
Samuel Tuckerman is a native of Miami and lives downtown. Two years ago, he found a home at a great price. "Found a pretty good opportunity in North Miami for like $280K. Unbelievable deal for a penthouse," he said.
The market was competitive and ultimately someone else got that home. So, instead of buying, Tuckerman decided to rent.
The Wall Street Journal cites an analysis done by CBRE, which found the average new monthly mortgage payment is 52% higher than the average apartment rent.
Local real estate expert Christopher Molina says there's more to consider.
"That might be correct in that small, isolated area called New York. However, South Florida has many market forces working in its benefit. Homes have gone up 5% this year alone," said Molina.
He says tax write-offs, deductions, and home equity can help lower costs in the long run.
Ultimately, he believes the time to buy is now.
"The market's settled. You can make more offers. You can make lower offers; you can actually find the home you love. Yeah, it's going to have a higher rate, but you refinance later," Molina said.
However, for people like Tuckerman renting is the option right now.
"With these high-interest rates, it makes it really challenging to commit to something even though you could potentially refinance next year if they start to lower rates."
Molina says inventory is limited in South Florida and will continue to be, so prices are likely not going to drop. He advises first-time homebuyers to look into programs and buy property.