Rent vs Own

If your home is currently listed with a real estate broker, this message is not intended to be a solicitation of the listing.  Ritter Real Estate is a federally registered trademark owned by Ritter Real Estate.  All other trademarks are the property of their respective owners.  REALTOR is a federally registered collective membership mark which identifies a real estate professional who is a member of the NATIONAL ASSOCIATION OF REALTORS and subscribes to its strict Code Of Ethics. Any information or tools on the web site are provided for educational and illustrative purposes only. The accuracy of the calculations and their applicability to your circumstances are not guaranteed. For personal advice regarding your financial situation, please consult with a financial advisor.
©Net Marketing Dynamix 2016
573-579-4046
339 Broadway Ste 206  Cape Girardeau MO. 63701    
Start My Home Search

Buying A Home Is Now 38%

Cheaper Than Renting!

“This is an awesome article from Forbes magazine. This is exactly what is

happening in Cape Girardeau County!”

Is renting or buying a better financial bet? Every six months, Trulia’s chief economist

Jed Kolko runs the numbers to answer that question and help you stay on top of the

trends.  So what does Trulia’s Winter 2014 Rent vs. Buy Report tell us? Although the

gap between renting and buying is narrowing across the U.S., homeownership is still

38% cheaper than renting.

Homeownership remains cheaper than renting nationally and in all of the 100 largest

metro areas according to Trulia ’s latest Winter Rent vs. Buy report. Rising mortgage

rates and home prices have narrowed the gap over the past year, though rates have

recently dropped and price gains are slowing. Now, at a 30-year fixed rate of 4.5%,

buying is 38% cheaper than renting nationally, versus being 44% cheaper one year

ago.

The rent versus buy math is different in each local market. Buying ranges from being

just 5% cheaper than renting in Honolulu to being 66% cheaper than renting in

Detroit. But even for a specific market, the cost of buying versus renting depends on

how much home prices rise (or fall) after you buy. Our model assumes conservative

home price appreciation, but – as we all know after the last decade – home prices can

unexpectedly rocket or plummet.

Buying Beats Renting Until Mortgage Rates Hit 10.6%

Even though prices increased sharply in many markets over the past year, low

mortgage rates have kept homeownership from becoming more expensive than

renting. Also, in some markets, like San Francisco and Seattle, rents have risen

sharply; rising rents hurt affordability relative to incomes, but rising rents make buying

look cheaper in comparison.

Will renting become cheaper than buying soon? Some markets might tip in favor of

renting this year as prices continue to rise faster than rents and if – as most

economists expect – mortgage rates rise, due both to the strengthening economy and

Fed tapering. For each metro, we identified the mortgage rate “tipping point” at which

renting becomes cheaper than buying, given current prices and rents. If rates rise,

Honolulu would become the first metro to tip, at a mortgage rate of 5.0%. San Jose

and San Francisco would also tip before rates reach 6%. But those are the extreme

markets. Nationally, rates would have to rise to 10.6% for renting to be cheaper than

buying – and rates haven’t been that high since 1989.

Call Now 573-579-4046

Rent vs Own

©Net Marketing Dynamix 2016
339 Broadway Ste 206  Cape Girardeau MO. 63701    
Start My Home Search

Buying A Home Is Now

38% Cheaper Than

Renting!

“This is an awesome article from Forbes magazine. This is

exactly what is happening in Cape Girardeau County!”

Is renting or buying a better financial bet? Every six

months, Trulia’s chief economist Jed Kolko runs the

numbers to answer that question and help you stay on

top of the trends.  So what does Trulia’s Winter 2014

Rent vs. Buy Report tell us? Although the gap between

renting and buying is narrowing across the U.S.,

homeownership is still 38% cheaper than renting.

Homeownership remains cheaper than renting

nationally and in all of the 100 largest metro areas

according to Trulia ’s latest Winter Rent vs. Buy report.

Rising mortgage rates and home prices have narrowed

the gap over the past year, though rates have recently

dropped and price gains are slowing. Now, at a 30-

year fixed rate of 4.5%, buying is 38% cheaper than

renting nationally, versus being 44% cheaper one year

ago.

The rent versus buy math is different in each local

market. Buying ranges from being just 5% cheaper

than renting in Honolulu to being 66% cheaper than

renting in Detroit. But even for a specific market, the

cost of buying versus renting depends on how much

home prices rise (or fall) after you buy. Our model

assumes conservative home price appreciation, but –

as we all know after the last decade – home prices can

unexpectedly rocket or plummet.

Buying Beats Renting Until Mortgage Rates Hit 10.6%

Even though prices increased sharply in many markets

over the past year, low mortgage rates have kept

homeownership from becoming more expensive than

renting. Also, in some markets, like San Francisco and

Seattle, rents have risen sharply; rising rents hurt

affordability relative to incomes, but rising rents make

buying look cheaper in comparison.

Will renting become cheaper than buying soon? Some

markets might tip in favor of renting this year as prices

continue to rise faster than rents and if – as most

economists expect – mortgage rates rise, due both to

the strengthening economy and Fed tapering. For each

metro, we identified the mortgage rate “tipping point”

at which renting becomes cheaper than buying, given

current prices and rents. If rates rise, Honolulu would

become the first metro to tip, at a mortgage rate of

5.0%. San Jose and San Francisco would also tip

before rates reach 6%. But those are the extreme

markets. Nationally, rates would have to rise to 10.6%

for renting to be cheaper than buying – and rates

haven’t been that high since 1989.

If your home is currently listed with a real estate broker, this message is not intended to be a solicitation of the listing.  Ritter Real Estate is a federally registered trademark owned by Ritter Real Estate.  All other trademarks are the property of their respective owners.  REALTOR is a federally registered collective membership mark which identifies a real estate professional who is a member of the NATIONAL ASSOCIATION OF REALTORS and subscribes to its strict Code Of Ethics. Any information or tools on the web site are provided for educational and illustrative purposes only. The accuracy of the calculations and their applicability to your circumstances are not guaranteed. For personal advice regarding your financial situation, please consult with a financial advisor.