Buying is Cheaper Than Renting

Written by Posted On Thursday, 01 June 2017 13:59




The results of the latest Rent vs. Buy Report from Trulia show that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States.

The updated numbers actually show that the range is an average of 3.5% less expensive in San Jose (CA), all the way up to 50.1% less expensive in Baton Rouge (LA), and 33.1% nationwide!

Other interesting findings in the report include:

Interest rates have remained low and, even though home prices have appreciated around the country, they haven’t greatly outpaced rental appreciation.

With rents & home values moving in tandem, shifts in the 'rent vs. buy' decision are largely driven by changes in mortgage interest rates.

Nationally, rates would have to reach 9.1%, a 128% increase over today’s average of 4.0%, for renting to be cheaper than buying. Rates haven’t been that high since January of 1995, according to Freddie Mac.

Bottom Line:

Buying a home makes sense socially and financially. If you are one of the many renters out there who would like to evaluate your ability to buy this year, let's get together to find your dream home.

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Kerry Blount

Originally from Montana, I now make my home in beautiful Tucson, Arizona.  Tucson is nestled between five mountain ranges which provide a stunning backdrop for this highly desireable retirement city.  The warm desert climate is only a small part of why people love Tucson.  The University of Arizona Wildcats provide entertainment for sports fans and the world class University Hospital provides cutting edge medical care for Tucson residents.  

I have decades of experience in construction and finance having owned a residential construction company.  I also had a very successful financial planning career and I retired as a financial advisor.  

The Tucson real estate market is heating up after a slow regrowth after the devastating financial collapse of 2008.  Resales have seen a frenzy of activity lately and new construction is heating up.  

If you are thinking of buying a home, don't let this opportunity in time pass you up - we may never see rates this low again, and with the new home subdivisions sprouting up, builders are always offering incentives to new buyers.  

I would love to show you what your money can buy in Tucson.  Let my years of experience help you find your perfect home.

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