CNN is reporting again that in the current market buying a home in most US cities is cheaper than renting an equivalent property.
In addition to a continuing decline in home prices, rock-bottom interest rates have added a lot of weight to the buy side of the scale. The overnight average rate for a 30-year fixed was just 4.19% on Monday, according to Bankrate.com. A 15-year fixed averaged just 3.43%.
Add in the tax perks of home ownership and for those who can afford it (and who can actually qualify for a loan), it certainly is a buyer’s market.
“It’s a personal decision, of course. But if you have a steady job and you are planning to stay for seven years or more and have enough cash to put 20% down and enough left over for seven or eight months of expenses, you’re better off buying in most places,” said Daisy Kong, a spokeswoman for Trulia.
Here in Scottsdale I can confidently agree with this claim.
It’s not just that buying is cheaper than renting here in Scottsdale, it’s more the fact that the inventory is so much more in favor of buyers. The options for renters currently tend to be quite limited and the competition from other renters is fierce.
The main stumbling block is that getting approved for a mortgage is tougher than ever.