CoreLogic is a great real estate research company who has spent time and money tracking popular indicators of the real estate market nationwide. They have been able to gather data from multiple sources and use their systems and algorithms to accurately predict what the trends are in today’s real estate markets.
The latest information coming from CoreLogic is saying that renters are carrying a higher monetary burden of the cost of renting than homebuyers and homeowners are carrying for paying their mortgage.
Although home prices have been rising, they are leveling off with the increases in mortgage rates and the tightening of buyer qualifications.
CoreLogic’s national rent index in December 2018 was 36 percent higher than December 2005. Conversely, a typical mortgage payment was down 4 percent over the same period.
If we look at numbers from December 2017 to December 2018, we notice that monthly mortgage payment rose by 12.1 percent. Homebuyers were hit with rising home prices and rising mortgage rates. But that is only one year.
If we zero in on the last decade we find that only 27 percent of homeowners were “cost burdened” whereas 46 percent of renters were “cost burdened.” Cost-burdened means they are putting 30 percent or more of their income towards mortgage cost or renting.
The argument of whether to buy or to rent has been around as long as there have been homes being built. Mortgage companies are offering many special programs either nationally or locally to assist buyers with down payments rendering that part of the argument almost mute. With the boosting of the U.S. Economy that has happened in the last three years, local employment has risen to a point where companies are having trouble finding workers. Ambitious persons looking to buffer their savings accounts might think about getting another job since the job market is more proliferate today than three years ago.
It all boils down to, do you want to pay your landlord’s mortgage? Or do you want to pay your own, gain equity and have a great investment toward your future? Contact me today and I can show you how we can make owning a homework for you.
On another interesting note, CoreLogic is reporting that consuming credit delinquencies are up while mortgage delinquencies are down. They attribute this to higher student loan debt in the last two years and consumer defaulting on auto loans. They noted that there were many subprime financed loans given to people with credit scores below 620, around 20 percent of them. And 1/3 of them were below 660 whereas mortgage borrowers had higher credit scores.
After the real estate market crash, the government forced mortgage lenders to institute new rules to prevent them from lender to less than optimal borrowers. Looks like the auto industry can take a cue from real estate.
And remember if you, a friend or family member need assistance with selling or buying a home I can help. Referrals and people needing relocation assistance are welcome! Search Single Family homes in Greenville. Search Condos and Townhomes in Greenville