Is Renting Becoming More Expensive than Owning a Home?:- Though owning a home is the American dream, few find the resources and cash inflow to make that dream come true in due time.real estate investing - renting or buying When the rise in inflation and economic breakdown hit the American markets a couple of years ago, the real estate market was one of the very first to face a huge blow.

A large number of people lost their homes to foreclosures, and rentals seemed to be the only way out for a vast majority of the population.

The Housing Market: Then and Now

The past decade has indeed been tough on home owners and real estate investors alike. However, the tables have definitely turned and the wheels are already in motion for the real estate market’s climb to its former glory.

As cited by the National Association of Realtors, the median prices of homes are set to increase significantly in the coming few months. The most recent quarterly report published by the Association quoted that almost 133 out of the 150 metropolitan areas in cities across America have witnessed significant median price rises in the first quarter of 2013.

As the inventory continues to stay at a tight bottleneck, experts predict that the later quarters of the year will also prove to be bullish when it comes to median prices of residential homes. ]

The Advantage of Rising Prices

The shrinking inventory coupled with the rising demand of homes will ultimately spell out to be a winning deal for investors, especially those who know the tricks of successful property flipping. Those investors who get their hands and attractive options for property flipping are definitely at the forefront, because they can take advantage of low prices of distressed and foreclosed homes and sell them off at considerable prices. The time for selling is gold for investors, both now and in the future. Now because the demand is high at the moment and later because the sale process will definitely increase in the long term.

Why Buy and Not Rent

However, it is not only sellers or investors who are being speculated as the forerunners of gaining profits through the flouring real estate market. The mortgage rates are low, and though they may be masking the actual process of homes in the market, the deal is definitely a head turner for those who are spending thousands of dollars per year on rent alone.

It is indeed possible to get a decent home today and start paying off the loan instead of giving rent and secure your future through home ownership! The improving economy has also sweetened the deal for new home owners in a more positive fashion, as they are now at a liberty to save more, pay off the mortgage faster and save themselves from any possible fluctuations in interest rates in near future.

As for investors looking to cash-in in the rental market, the appeal is still striking, particularly in luxury properties and vacation homes. The demand for home sales is definitely strong, but it may actually take a while before it significantly diminishes the allure and advantage of going for rentals.

Source: Data from Quarterly Report by the National Association of Realtors