According to Fiserv, a leading global provider of financial services technology solutions, the mortgage payment for the median-priced U.S. home is now less than median asking rent, making it cheaper to buy than rent in many parts of the nation. This should come as good news to first time buyers, many of which are eager to trade the rental lifestyle for the security and freedom of home ownership.
As of October 4, 2012, the median asking price for rental homes in the U.S. was listed at $1,380, according to data from Zillow.com. The median asking price for homes for sale in the U.S. was listed at $188,900. Assuming you take out a loan for the entire amount, at an estimated fixed interest rate of 3.50% for 30 years, your monthly payment would be somewhere around $1,045. That’s $335 less per month than the median rent.
What’s driving these trends appears to be an overall shift in the housing market. As home ownership rates fell, rental rates skyrocketed – but with the recent improvements in the U.S. real estate market, more Americans are being drawn back to home ownership. Historically low interest rates and favorable home prices have further attracted home buyers, while other initiatives like HARP and HAMP have helped current homeowners find affordable refinancing or loan modification solutions.
This trend may not necessarily reflect the current conditions in the??Frisco??or McKinney markets, but not to worry. There are still plenty of good deals on affordable entry-level homes in our area. At the time of this writing, there were 1,856 homes for sale in Frisco, with the lowest-priced one listed on Trulia.com for only $62,500.??
If you’re ready to make the switch from renting to owning, contact a real estate professional. Remember, the figures mentioned above only represent estimates and the data will surely change over time. After speaking with a licensed real estate agent, don’t forget to contact The Decker Group for Texas home financing.