If you've been watching the price of homes rise over the past few years and you're still not sure if it's a good time to buy...well it's still a good time. If you're still renting it's time to find a good Realtor and make a move. When you really look at the dollars and cents you will find that it does work out in your favor. Even with rising home prices the low interest rates still make homeownership more affordable than renting and here's a few reasons why.
According to ATTOM Data Solutions and the recently released 2021 Rental Affordability Report, it states:
“Owning a median-priced three-bedroom home is more affordable than renting a three-bedroom property in 572, or 63 percent of the 915 U.S. counties analyzed for the report.
That has happened even though median home prices have increased more than average rents over the past year in 83 percent of those counties and have risen more than wages in almost two-thirds of the nation.”
The main reason this is possible is due to the historically low interest rates.
Todd Teta, Chief Product Officer with ATTOM Data Solutions, explains:
“Home-prices are rising faster than rents and wages in a majority of the country. Yet, home ownership is still more affordable, as amazingly low mortgage rates that dropped below 3 percent are helping to keep the cost of rising home prices in check.”
In 2020 mortgage rates reached all time lows multiple times and they are continuing on that trend so far in 2021. The low rates are pretty much the largest contributing factor to the affordability. Buyers have more purchase power and they are using it to their advantage.
Teta also notes:
“It’s startling to see that kind of trend. But it shows how both the cost of renting has been relatively high compared to the cost of ownership and how declining interest rates are having a notable impact on the housing market and home ownership. The coming year is totally uncertain, amid so many questions connected to the Coronavirus pandemic and the broader economy. But right now, owning a home still appears to be a financially-sound choice for those who can afford it.”
So if you're thinking about making your dream of homeownership a reality now is a great time. I'm happy to help and provide guidance so you can feel confident in your decision.
Real Estate Remedy-Colorado Springs CO Real Estate- Alyce Chermack, REALTOR/Broker Associate- I provide the real estate remedy for people who are growing their nest or emptying one, so they can focus on the future without the headaches and hassles.
Exit Realty Pikes Peak and its real estate professionals focus on Colorado Springs CO, located in El Paso County. We list and sell homes in Monument, Peyton, Falcon, Manitou Springs, Woodland Park, Pueblo and all nearby communities. 303-475-2792