Looking for a change in scenery? That would be a resounding YES from a lot of you! However, If spending more time at home over the past year is making you really think hard about buying a home instead of renting one, you’re not alone. We’ve all gone down a rabbit hole or two over the past few months and you may be wondering if the dollars and cents add up in your favor as home prices continue to rise. According to the experts, in many cases, it’s still more affordable to buy a home than rent one. Here’s why.
A recent report states that owning a median priced three bedroom home is more affordable than renting the equivalent property. This has happened even though median home prices have increased more than average rents. It’s true and this solution doesn’t involve any impossible math (YAY!).
How is this possible?
The answer: historically low mortgage interest rates (so simple!). In 2020, mortgage rates reached all-time lows 16 times, and so far, they’re continuing to hover in low territory this year. Fantastic, right? These low rates are a big factor in driving affordability. While the cost of renting has been high, the cost of ownership is now declining due to this notable impact on the housing market. A total win win and it puts your change of scenery within your grasp!
If you’re considering buying a home this year, let’s connect today to discuss the options that match your budget while affordability is in your favor.