If you’ve been watching prices drop and waiting for the right moment to jump into the real estate market, now may be the time. Mortgage rates are still low, and now it’s cheaper to buy than it is to rent in San Diego!
There is a formula used to determine whether it is cheaper to rent or buy, and according to figures posted by Trulia, the numbers add up to more value in home ownership than in paying rent. The real estate site compared the median sales price to the median monthly rent of a two-bedroom apartment, condo or townhouse in 50 cities, and San Diego ranked 32nd, and was among the cities where buying is better.
Although the U.S. economy is still in the recovery process, there are many potential homeowners whose personal financial situations are solid, and these people are in a great position to take advantage of low prices and mortgage rates.
“Price alone should never be the sole factor in deciding to purchase a home. Instead, buyers should first ask themselves if they plan to live in the home for at least seven-to-10 years, could make monthly payments on the house, and have enough cash in the bank for a down payment and an additional six to eight months’ worth of mortgage payments. If you can answer ‘yes’ to each of these questions, then the cost of buying a home definitely outweighs renting in most cities,” Ken Shuman, Head of Communications at Trulia said.
In San Diego, the struggling economy has put a damper on new construction, so the inventory of new condos could be quickly swallowed up once the country gets back in a buying mood, and tight inventory means rising prices. By investing in a home before the market rebounds, new homeowners position themselves to gain more equity in their property.
If you are ready to make the jump from renter to homeowner, enter your information in the box to your right and a rock star real estate agent will help you save thousands on a home in San Diego.
Photo courtesy of: Oiskas at en.wikipedia [Public domain], from Wikimedia Commons