When considering the average price
of a home financed at the average interest rate available compared to the
average rental rate. This is a great time to buy. Historically owning a home
cost 30-40% more than renting the same property. How times have changed. Today
it costs about 25% less. If you are currently renting waiting for the housing
market to improve, to say the 2006, 2000 or 1990 levels, essentially you are
spending more today on rent than a mortgage to later spend more on a mortgage
than you would if you continued renting.
If you have an stable income, average or better credit, there could not be a better time to buy. A small or large down payment is great, however in the Atlanta market and many others there are programs that provide down payment assistance. In most instances the amount you need to purchase a home is less than a security deposit on a rental. Looking back in 10 years you will either concluded you made the best or worst decision of your life, not taking advantage of historic and unprecedented opportunity to become a home owner today.
Notes from the report: Prices and mortgage payments are based on the median existing single-family home price, averaged from quarterly data to obtain annual prices. Mortgage payments are calculated using the interest-rate average for that year and assume a 20% downpayment and fixed 30-year term. Rent is the median gross monthly rent from the 2010 American Community Survey, indexed using the CPI for rent of primary residence. Income is median household income.
Sources from the report: JCHS tabulations of National Association of Realtors®, Composite Affordability Index (NSA) and Existing Single-Family Home Sales via Moody’s Analytics; Freddie Mac, Primary Mortgage Market Survey; US Census Bureau, American Community Survey; Moody’s Analytics, median household income estimates.