“In 22 of the 50 largest metro areas, monthly mortgage payments are now lower than rent payments.”
That’s right—according to a recent study from Zillow, in 22 of the 50 largest metro areas, monthly mortgage payments are now lower than rent payments (see chart below):
As mortgage rates have eased off their recent peak, home prices have moderated, and inventory has ticked up, affordability has improved significantly. When you add all of that up, it’s getting less expensive to buy a home than to rent one in many parts of the country.
This is a big deal if you’ve been renting for a while now. But if you don’t see your city on this list, don’t sweat it. Things are moving fast, and your area might be joining these top metros soon.
You see, talking with a local real estate agent about what’s happening in your market before this happens in your ideal neighborhood could really change the game for you. It’s all about being informed by a true expert, and understanding what was out of reach before might actually be getting more affordable than you think.
Now, while this study compares monthly rent to principal and interest on a mortgage payment (not the whole monthly payment), let’s think through this. As Zillow notes, what you can’t ignore when you buy a home are things like taxes, insurance, utilities, and maintenance that should also be factored into your budget and your monthly payment.
But remember – renters pay extra fees too, like renters’ insurance, utilities, parking, and more. And while doing the math may feel like a drag, this equation could be a much more exciting one to work through today.
So, grab your calculator and your agent because the big takeaway is this: it may be time to determine if you’re in a spot to afford what you couldn’t just a few months ago.
As Orphe Divounguy, Senior Economist at Zillow, says:
“… for those who can make it work, homeownership may come with lower monthly costs and the ability to build long-term wealth in the form of home equity — something you lose out on as a renter. With mortgage rates dropping, it’s a great time to see how your affordability has changed and if it makes more sense to buy than rent.”
Whether you live in one of these budget-friendly metros where the scales have already tipped in your favor, or any town in-between, it’s time to connect with a local real estate agent to get the conversation started.
With mortgage rates coming down and more homes hitting the market, you’ll want to be ready to jump back into your search – before everyone else does.
Bottom Line
If you’re tired of renting and ready to find out what it takes to purchase a home in our area now that the landscape may be shifting, let’s do the math together to see if buying a home makes sense for you now or sometime soon.
To view original article, visit Keeping Current Matters.
5 Homebuying Acronyms You Need to Know
“Learning the lingo of homebuying is an important part of feeling successful when buying a home.”
3 Signs the Housing Market Is on the Rebound
Existing home sales, buyer traffic and pending home sales are all good signs that the real estate market is rebounding!
Just Sold! 62 Cobbleridge Lane, Manorville, NY 11949
Another home SOLD by Jessica Markovic of BrookHampton Realty! Let us help you with your next move! 🏡😎
4 Tips to Improve Your Home and Save on Your Energy Bill
By making a few key upgrades to your home, you’ll save on your utility bills and improve the energy efficiency of your home.
What to Expect from Your Home Inspection
To ensure you make an educated decision before you buy, work with a professional you can trust to give you the most information possible.
How Does the Supply of Homes for Sale Impact Buyer Demand?
The price of any item is determined by supply, as well as the market’s demand for the item.