Stop Renting (Lithia, GA)

Stop Renting

Renters Paying Substantially More While Owning Costs Less Get your FREE Home Buyer s Guide Read Below and see why buying a home can cost LESS THAN RENT In a recent Insights Blog CoreLogic reported that rent prices have skyrocketed since 2005. Meanwhile the typical mortgage payment has actually decreased. CoreLogic s national rent index was up 36% in December 2018 compared with December 2005 while the typical mortgage payment was down 4% over that period. Why the difference between the costs of renting versus owning It makes sense that rents have risen. However how did mortgage payments decrease CoreLogic explained 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. Additionally 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. November - 17.3% December - 16.9% January - 16.2% February 15.9% Bottom Line What does this all mean to the current housing market We think First American said it best in a post last week 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. Get your FREE NO OBLIGATION INFORMATION GUIDE Call 1-844-714-5226 ID 6201