BRE Lic# 01061646

 

 Thinking of buying a home? Consider this: The gap between monthly rents and mortgage payments is at its lowest level in almost 20 years.

In some markets, the difference can be less than $100, according to a national study conducted for The Associated Press by Marcus & Millichap Real Estate Investment Services.

The study, part of a week-long look at homeownership by the AP, found years of falling home prices and low interest rates have created the ultimate buyer’s market. But while buying a home is more affordable, it isn’t necessarily easier.

Tougher lending standards have made it harder to qualify for a home loan, and unemployment is at 9.7 percent. Tax incentives for homebuyers will expire April 30, and interest rates are expected to increase this year.

“Statistically, it’s a great time to buy,” said Hessam Nadji, managing director of Marcus & Millichap. “Psychologically, the consumer doesn’t feel like it’s a great time to buy.”

The analysis of 45 metro areas found the difference between the monthly mortgage payment on a median-priced home and the median rent is down to $256. The last time that gap was anywhere near that small was in 1993 when it fell to $264, according to the study.

Marcus & Millichap used median prices for the last three months of 2009 and calculated mortgage payments by assuming a 10 percent down payment and a 30-year fixed loan at 5.07 percent, among other factors. It also assumed borrowers. 

Let Wendi-Mae Davis, CRS, GRI Resident Realtor for Connect Realty.com, INC., be your resource-phone us today Toll Free 866-333-6333 or direct at 916-616-0874 also wendimae@wendimae.com or check out her personal website at: HTTP://www.wendimae.com