- Low mortgage rates and the recovering economy have come together to make buying a home cheaper than renting.
In the Northwoods realtors say homes are selling for up to 80-percent below the fair market value.
John Krueger is a Realtor at John Krueger Realty and says, "So that means the trend has reversed from a sellers' market to a buyers' market. That will reverse again because in the real estate business we're always in a cycle. Unfortunately we're in a longer cycle than usual, but that's going to go back up again."
While prices are low, many are taking advantage of the deals and turning a profit by converting homes into rental properties, Krueger says, "Investors and contractors are scooping up some of these low-end properties to rent. The rental market is strong and the prices of rental properties will show that. So many people lost their homes, unfortunately, and they have to go someplace, so they rent."
This buyers' market won't hang around forever though and realtors recommend purchasing a home now if you can afford it before it turns back into a sellers' market.
John Krueger Realty
Written By: Michael Crusan