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!
Here’s April 2017’s Monthly Indicators report from the Greater Boston Association of Realtors® showing Boston real estate market trends.
April 2017 Greater Boston Real Estate Market Trends
A continued shortage of homes for sale and rising prices throughout Greater Boston have softened overall sales of single-family homes and condominiums in April according to data released from the Greater Boston Association of REALTORS® (GBAR).
Sales of single-family detached homes saw a 9.4 percent drop in year-over-year sales in April, as 844 homes were sold compared to the 932 homes sold in April 2016, which is a 9.4 percent drop. This is the ninth highest sales total on record for Greater Boston and is slightly lower than the monthly historical average of 867 homes sold. In the condo market, there were 734 units sold in April 2017, which was an 11.5 percent decrease from the 829 units sold in April 2016. Last month’s condo sales were the tenth highest on record and fell short of the historical monthly average of 797 units sold.
The lack of inventory is continuing to hinder sales activity as there simply aren’t enough homes on the market to satisfy buyer demand. The competition for limited supply of listings is creating multiple offer situations which is driving up prices beyond the reach of some buyers, especially those at the entry level.
- April condo sales DOWN -11.5%
- Median prices UP 9% ($523,500)
- Active Listings DOWN -27.3% to 1,655
- Listings added to the market DOWN -5.5% over last year (1,402 from 1,484 in 2016)
- April single-family home sales DOWN -9.4%
- Median prices UP 12.3% ($595,000)
- Active Listings DOWN -32.3% to 2,768
- Listings added to the market DOWN -8.3% over last year (1,970 from 2,149 in 2016)
Interested In Specific Neighborhood / Area Real Estate Market Trend Data?