You may, however, 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 to rent one. Here’s why this is the case today.
ATTOM Data Solutions released the Q1 2021 Rental Affordability Report, which states:
“Median home prices of single-family homes and condos in the first quarter of this year were more affordable than historical averages in 52 percent of counties with enough data to analyze.”
How is this possible?
The answer: historically-low mortgage interest rates. ATTOM Data Solutions explains:
“Rising wages and falling mortgage rates still compensated for near-20 percent spikes in home prices over the past year, helping to keep median home prices affordable for average wage earners around the country.”
These low rates are a big factor in driving affordability. The report also notes:
“With workplace pay rising and home mortgage rates continuing to hit historic lows, major expenses on a median-priced home nationwide still consumed just 23.7 percent of the average wage across the country in the first quarter of 2021… It remained well within the 28 percent standard lenders prefer for how much homeowners should spend on those major expenses.”
If you’re considering buying a home this year, let’s chat today to discuss the options that match your budget while it’s still such a good time to buy.