Buying a Home is 38% Less Expensive Than Renting!
Trulia recently released their Rent vs. Buy Index. In their report, Trulia explains that homeownership is still 38% cheaper than renting in ALL of the 100 largest metro areas! Now that the 30-year fixed interest rate is at 4.5%, buying a home has become 38% less expensive than renting nationally, versus being 44% cheaper a year ago.
Here are some other important findings in the homeownership vs. renting report:
-Across the United States, mortgage interest rates would have to rise to 10.6% for renting to become less expensive than buying a home. Rates have not been that high since 1989!
-Low mortgage rates have kept homeownership from becoming more expensive than renting, despite home prices increasing in many real estate markets over the past year.
-Some housing markets may see renting this year increase as prices continue to go up faster than rents and if mortgage rates rise, due to a strengthening economy.
Purchasing a home now makes the most sense. Home prices are projected to appreciate over 4% and mortgage rates are expected to rise almost a full percentage point. Locking in a low mortgage rate before they go up ensures your payment won’t increase over the coming years. If you rent a home, your housing expenses will only continue to rise.
A recent study revealed that the number of existing homeowners who are planning to buy a home this year is about to go up dramatically. Some are moving into larger homes, while others are downsizing or making a lateral move. If you decide to keep renting a home instead of forging into homeownership, it will cost you. Here is why:
Thinking of buying or selling a home in the La Jolla area? As consistent Top Producers in real estate, Linda Daniels and The Daniels Group are your La Jolla housing specialists. Working with The Daniels Group will give you with the advantage of having local experts to ensure that you have a successful real estate transaction. From buying, selling and investing to financing options and more, we have the expertise and resources to help you achieve your goals. Call us today at (858) 361-5561 or email us anytime by clicking here.