Buying is now cheaper than renting in the US
The results of the latest Rent vs. Buy Report published by Trulia, shows that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States. Of course this requires necessary down payment and closing costs. If you plan on being in an area (other than for a short period of time) it may be worthwhile to look into buying a home.
Since the recent housing bubble and slowdown we have seen home values appreciating, and that is good news for homeowners. Homeowner equity is increasing. CoreLogic’s latest Equity Report revealed that 91,000 properties regained equity in the first quarter of 2017. This is great news for the country, as 48.2 million of all mortgaged properties are now in a positive equity situation. Meaning risk continues to steadily decline as a result of increasing home prices.
Historically, the choice between renting or buying a home has been a tough decision. According to Pulsenomics study looking at the percentage of income needed to rent a median-priced home today (29.2%) vs. the percentage needed to buy a median-priced home (15.8%), the choice becomes obvious. Every market is different. Talk to me before you renew your lease again, find out if you can put your housing costs to work by buying this year!