Does Renting or Owning Cost Less in Santa Fe? Find out here.
If you’re one of the Santa Fe renters who spends their evenings scrolling through houses for sale, wondering if buying makes sense or is even a possibility, this article is for you. Did you know you’re paying MORE than homeowners overall?
Why the difference between the costs of renting versus owning?
It makes sense that rents have risen. However, how did you know that mortgage payments actually decreased? How did that happen? CoreLogic explains:
“It’s mainly because mortgage rates back in December 2005 were significantly higher, averaging 6.3% for a fixed-rate 30-year loan, compared with 4.6% in December 2018.
The national median sale price in December 2005 – $190,000 – was lower than the $220,305 median in December 2018, but because of higher mortgage rates in 2005 the typical monthly mortgage payment was slightly higher back then – $941 – compared with $904 in December 2018.”
Additionally, a recent report by the National Association of Realtors (NAR) showed that purchasing a home requires less of your monthly paycheck. Unbelievable right?
According to the Economists’ Outlook Blog, NAR’s February 2019 Housing Affordability Index showed that the “percentage of income needed” to pay the typical mortgage has decreased the last three months.
- November – 17.3%
- December – 16.9%
- January – 16.2%
- February – 15.9%
What does this all mean to the current housing market? We think First American said it best in a post last week:
“The mortgage rate-driven affordability surge has arrived just in time… Rising affordability has already benefited home buyers and, if the lower rate environment persists, we’re in for a great spring home-buying season.”
In Santa Fe, we have options for down payment assistance, including Santa Fe Housing Trust money for lower income buyers. Call me at 505-504-1101 to discuss different ways we might be able to help you. There’s no obligation and you just might save some money!