Mortgage rates would need to exceed 10 percent for renting to become the less-costly option, Trulia says.
Homeownership remains cheaper than renting nationally and in all of the 100 largest metro areas according to Trulia's latest winter "Rent vs. Buy" report. Rising mortgage rates and home prices have narrowed the gap over the past year, though rates have recently dropped and price gains are slowing. Now, at a 30-year fixed rate of 4.5 percent, buying is 38 percent cheaper than renting nationally, versus being 44 percent cheaper one year ago.
The rent-versus-buy math is different in each local market. Buying ranges from being just 5 percent cheaper than renting in Honolulu to being 66 percent cheaper than renting in Detroit. But even for a specific market, the cost of buying versus renting depends on how much home prices rise (or fall) after you buy. Our model assumes conservative home-price appreciation, but — as we all know after the last decade — home prices can unexpectedly rocket or plummet.
In a competitive market, homebuying can be a contact sport. Here’s your game plan.
After all, new-home construction is only a third of what it was in the prerecession days of 2006, so it's expected that demand will outstrip supply. Meanwhile, after housing prices have shot up over the past year – 11.3 percent, according to the S&P/Case-Shiller Home Price Index – prices have dropped by 1 percent in each of the last two months. If you're thinking this spring is a good time to starting looking for a house, you are hardly alone. That, of course, is the problem. Your dream house, which might have been easy enough for you to grab a few years ago, is being eyed by other potential buyers.
If you're trying to decide between an ARM or a fixed-rate mortgage, you're not alone. Here's a primer on mortgage types.
When it comes to buying a house, you have to make lots of decisions. You have to figure out which neighborhood you want, which school district, how much of a down payment to make, etc. One of these decisions is whether you will take out a fixed-rate or adjustable-rate mortgage.
A homeowner's cherished art might rub a potential buyer the wrong way.
It was the man in white underpants who got the biggest reaction. The painting, hanging in Adrienne Leigh and Jeffrey Schubiner's master bedroom, topped the list of artworks her real estate agent advised her to stow away during showings when they put their home outside San Francisco up for sale last year.
"I never thought my art would offend anyone," says Leigh, whose great aunt painted the portrait of the man when she was a student at the Art Institute of Chicago. Also on the list of works to be hidden: a topless woman painted by her mother, which hung over the fireplace in the living room. In its place went a large, bland print from Pier 1. The couple sold their house and promptly put all the paintings up in their new place.
In the fourth quarter, 19.4 percent of homeowners owed more on their home than what it was worth, down from 27.5 percent in 2012.
On Friday, Zillow released the fourth quarter Negative Equity Report. Nationally, the share of homeowners with a mortgage that are underwater, owing more on their home than their home is worth, has dropped below 20 percent for the first time in years.
As home values have continued to rise over the past year, millions of underwater homeowners have come up for air and are finally able to put their home on the market. This increase in inventory should, in turn, help create a more balanced home shopping season than we’ve seen in the past few years, with buyers having more choice and perhaps less competition.
Consumer advocates question if residents will be shown the door in these cases.
With home prices rising, big real estate investors have discovered another source of cheap property: bad mortgages. American Homes 4 Rent, the second-largest single-family landlord after Blackstone Group, Barry Sternlicht’s Starwood Waypoint Residential Trust and Altisource Residential are stepping up acquisitions of nonperforming loans, or NPLs, to expand their holdings of homes to operate as rental properties.
The actress and comedian is looking to gain more than $1 million on the property she bought in 2009.
Actress and comedian Kristen Wiig may be laughing all the way to the bank if she gets close to her current asking price for her Soho loft.
The former "Saturday Night Live" star and all-around funny lady has listed her co-op apartment in New York City. Curbed brings word that Wiig is looking to bank $2.595 million for the two-bedroom loft — $1.095 million more than what she paid for the property back in 2009.
The average rate for a 30-year fixed-rate home loan is now 4.37 percent.
The average rate for a 30-year fixed mortgage was 4.37 percent this week, up from 4.33 percent, Freddie Mac said on Thursday. The average 15-year rate rose to 3.39 percent from 3.35 percent, the McLean, Va.-based mortgage-finance company said.