There really is a difference between renting a home and owning a home. But, you knew that, right?
As a renter you are paying a mortgage – your landlord’s, not yours, and you have no tax deductions. Bummer.
Since 2005, rent prices have skyrocketed while the typical mortgage payment as actually decreased.
“It’s mainly because mortgage rates back in December 2005 were significantly higher, averaging 6.3% for a fixed-rate 30-year loan, compared with 4.6% in December 2018.
The national median sale price in December 2005 – $190,000 – was lower than the $220,305 median in December 2018, but because of higher mortgage rates in 2005 the typical monthly mortgage payment was slightly higher back then – $941 – compared with $904 in December 2018.”
Insights Blog, CoreLogic
A recent report by the National Association of Realtors (NAR) showed that purchasing a home requires less of your monthly paycheck.
According to the Economists’ Outlook Blog, NAR’s February 2019 Housing Affordability Index showed that the “percentage of income needed” to pay the typical mortgage has decreased the last three months. Wow!
November – 17.3%
December – 16.9%
January – 16.2%
February – 15.9%
What does this all mean to the current housing market?
“The mortgage rate-driven affordability surge has arrived just in time… Rising affordability has already benefited home buyers and, if the lower rate environment persists, we’re in for a great spring home-buying season.”
First American post
WHY?? Still renting? Don’t think you can afford a house?
Contact me today and you may have a very pleasant surprise.