In the latest Rent vs. Buy Report from Trulia, they
explained that homeownership remains cheaper than renting with a traditional
30-year fixed rate mortgage throughout the 100 largest metro areas in the
United States. The updated numbers actually show that the range is from an
average of 16% in Honolulu (HI), all the way to 55% in Sarasota (FL), and 35% Nationwide!
The other
interesting findings in the report include:
Interest rates have
remained low and even though home prices have appreciated around the country
(3.9%), they haven’t greatly outpaced rental appreciation (3.7%). “In the past year, these two trends
have made homeownership even more affordable compared with renting.”
§ Some markets might
tip in favor of renting if home prices increase at a greater rate than rents
and if – as most economists expect – mortgage rates rise, due to the
strengthening economy.
§ Nationally, rates
would have to rise to 10.6% for renting to be cheaper than buying – and rates
haven’t been that high since 1989.
Bottom Line
Buying a home makes sense socially and financially.
Rents are predicted to increase
substantially in the next year, so lock in your housing cost with a mortgage
payment now.
David Demangos 858.232.8410 Locally Known, Globally Connected Luxury Home Marketing Specialist Global Property Specialist David@AwesomeSanDiegoRealEstate.com www.AwesomeSanDiegoRealEstate.com Our Team Goes to Extremes to Fulfill Your Real Estate Dreams! |
Thursday, June 4, 2015
Buying a Home is 35% Less Expensive than Renting!
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