Myrtle Beach Real Estate

Is it now Cheaper to Own Than it is to Rent?

Carla Zeineh and her husband recently discovered that it was cheaper for them to buy a home than to rent one.  With a 5% mortgage rate, and 20% down payment, their monthly cost on a $350,000 home would be less than the $1,800 per month they now pay on their rental condo.

More and more people are finding that it is now cheaper to own their own homes than it is to rent and are following in Carla's footsteps of embarking on their quest to Home ownership.

Using data that measures average home prices and rent payments for 54 metro areas between 1984 and 2004, Moody's Economy.com estimated that eight markets are "undervalued." In those eight markets, home prices relative to rents are below or within 5% of their historical levels.

The cost of owning a home relative to renting has fallen sharply.   Lower prices and interest rates, coupled with various other incentives like the $8,000 tax credit have induced many Renters to finally jump the fence into home ownership.

What are you seeing in your markets?  We are super busy in Myrtle Beach!

*Click here to read the Wall Street Journal article:  Renters Lose Edge on Homeowners