Buying a House – Renting vs Buying

Affordability is not a significant issue when buying a house.

Supply of houses for sale has barely kept pace with demand, and inventory of new or existing houses for sale shrunk down to only a four-month supply ading to price pressures. Also, adding to price pressure is home mortgage interest rate, which remain close to 4%.

Although prices are going up and inventory is scarce, because of low interest rates and an increasing job market and increasing wages, house buying affordability is nowhere near challenging times.

The percentage of income needed to afford a median rent historically was 25.8%. Right now, we’re over 29%, much higher than historic numbers. But if we look at buying a house, the percentage of income needed to purchase a median-price house historically is about 21%. Today, we’re still lower at 15.8%, well below historic numbers. The percentage of income that a family needs to buy a house is less than historical numbers.

Part of the reason for is that the 30-year fixed interest rate from Freddie Mac is lower causing more and more home renters, who are seeing their rent increase, to go ahead and buy their  first house and spend less than they would on rent. Today, we’re seeing more and more renters turning into home shoppers.

 

The cost of renting vs. buying a house

 

TransUnion reported that the share of renters buying a home has gone up from 45% in the first quarter of 2015 to 50% in the first quarter of 2016, and up to 55% in the first quarter of 2017.

 

Share of renters buying a house

 

Rents increasing, home mortgage availability getting easier, and interest rates staying low, are reasons for  renters to buy a house. If you are a prospective home buyer who is ready and willing to act now, but are not sure if you are able to or woule like to know more about available homes for sale in Woodland Hills, West Hills, Chatsworth, Canoga Park, Tarzana, Encino, Lake Balboa, Van Nuys, North Hills or any other San Fernando Valley or Santa Clarita Valley real estate, please contact the real estate professional  agents at HelpUSell Real Estate, Southland Realty, today at (818) 997-1000.

 


 

Buying a house? Search houses for sale here, we have complete Multiple Listing Service (MLS) of residential houses for sale in Lake Balboa, Van Nuys, Reseda, Woodland Hills, Chatsworth, Canoga Park, Warner Center, Tarzana, Encino, or any other Los Angeles, San Fernando Valley and Santa Clarita Valley area real estate.

 

Sort by:
$319,900 - 2Br/1Ba -  for Sale in Woodland Hills
$319,900
New
MLS# SR18290050

22204 Calvert Unit 3
Woodland Hills, CA 91367

Property Type: Stock Cooperative
$999,000 - 3Br/3Ba -  for Sale in Encino
$999,000
New
MLS# SR18289949

5148 Hesperia Avenue
Encino, CA 91316

Property Type: Single Family Residence
$799,000 - 4Br/2Ba -  for Sale in Tarzana
$799,000
Open House
New
MLS# SR18288447

19426 Calvert Street
Tarzana, CA 91335

Property Type: Single Family Residence
$999,995 - 4Br/4Ba -  for Sale in Encino
$999,995
Open House
New
MLS# SR18289496

6213 Newcastle Avenue
Encino, CA 91316

Property Type: Single Family Residence
$359,900 - 2Br/2Ba -  for Sale in Not Applicable-tar (natar), Tarzana
$359,900
Open House
New
MLS# 318004917

18640 Collins Street Unit 116
Tarzana, CA 91356

Property Type: Condominium
$849,990 - 3Br/2Ba -  for Sale in West Hills
$849,990
New
MLS# SR18287381

24047 Lemay Street
West Hills, CA 91307

Property Type: Single Family Residence
$565,000 - 4Br/2Ba -  for Sale in Winnetka
$565,000
Open House
New
MLS# SR18289079

7336 Fullbright Avenue
Winnetka, CA 91306

Property Type: Single Family Residence
$599,999 - 3Br/2Ba -  for Sale in Winnetka
$599,999
Open House
New
MLS# PW18289345

7407 Madora Avenue
Winnetka, CA 91306

Property Type: Single Family Residence
$715,000 - 3Br/2Ba -  for Sale in Woodland Hills
$715,000
New
MLS# SR18289161

22532 Berdon Street
Woodland Hills, CA 91367

Property Type: Single Family Residence
$520,000 - 2Br/1Ba -  for Sale in Lake Balboa
$520,000
Open House
New
MLS# WS18289583

17453 Sherman Way
Lake Balboa, CA 91406

Property Type: Single Family Residence
$339,900 - 2Br/2Ba -  for Sale in Canoga Park
$339,900
Open House
New
MLS# SR18287256

7826 Topanga Canyon Boulevard Unit 11
Canoga Park, CA 91304

Property Type: Condominium
$449,000 - 2Br/3Ba -  for Sale in Tarzana
$449,000
Open House
New
MLS# SR18288619

18333 Hatteras Street Unit 108
Tarzana, CA 91356

Property Type: Townhouse
$599,999 - 3Br/2Ba -  for Sale in West Hills
$599,999
Open House
New
MLS# SR18288446

7830 Sedan Avenue
West Hills, CA 91304

Property Type: Single Family Residence
$868,950 - 4Br/3Ba -  for Sale in Northridge
$868,950
New
MLS# SR18289022

17100 Gledhill Street
Northridge, CA 91325

Property Type: Single Family Residence
$639,500 - 4Br/2Ba -  for Sale in Van Nuys
$639,500
New
MLS# WS18288997

7044 Firmament Avenue
Van Nuys, CA 91406

Property Type: Single Family Residence
$149,000 - 3Br/2Ba -  for Sale in Canoga Park
$149,000
New
MLS# SR18288064

24425 Woolsey Canoyon Road
Canoga Park, CA 91304

Property Type: Manufacture 433
$408,000 - 2Br/3Ba -  for Sale in Canoga Park
$408,000
New
MLS# OC18288218

8851 Independence Avenue Unit 30
Canoga Park, CA 91304

Property Type: Townhouse
$939,000 - 4Br/3Ba -  for Sale in West Hills
$939,000
New
MLS# SR18288640

7546 Atherton Lane
West Hills, CA 91304

Property Type: Single Family Residence
$529,000 - 4Br/2Ba -  for Sale in Winnetka
$529,000
New
MLS# 18414672

7633 Mason Avenue
Winnetka, CA 91306

Property Type: Single Family Residence
$699,900 - 4Br/3Ba -  for Sale in Winnetka
$699,900
New
MLS# CV18289036

6943 Cozycroft Avenue
Winnetka, CA 91306

Property Type: Single Family Residence
$1,299,000 - 4Br/4Ba -  for Sale in Tarzana
$1,299,000
New
MLS# SR18288610

5804 Donna Avenue
Tarzana, CA 91356

Property Type: Single Family Residence
$724,999 - 3Br/2Ba -  for Sale in West Hills
$724,999
Open House
New
MLS# SR18288013

7838 Sedan Avenue
West Hills, CA 91304

Property Type: Single Family Residence
$629,000 - 3Br/2Ba -  for Sale in Reseda
$629,000
New
MLS# SR18288879

6716 Kurl Way
Reseda, CA 91335

Property Type: Single Family Residence
$569,000 - 3Br/1Ba -  for Sale in Other - Othr, Van Nuys
$569,000
New
MLS# 218014902

6902 Jellico Avenue
Van Nuys, CA 91406

Property Type: Single Family Residence
$430,000 - 2Br/1Ba -  for Sale in Reseda
$430,000
New
MLS# EV18287637

7310 Lindley Avenue
Reseda, CA 91335

Property Type: Single Family Residence
$699,900 - 5Br/3Ba -  for Sale in Northridge
$699,900
New
MLS# SR18286970

17601 Cantara Street
Northridge, CA 91325

Property Type: Single Family Residence
$489,000 - 3Br/1Ba -  for Sale in Lake Balboa
$489,000
New
MLS# SR18288132

17118 Saticoy Street
Lake Balboa, CA 91406

Property Type: Single Family Residence
$560,000 - 3Br/1Ba -  for Sale in Canoga Park
$560,000
Open House
New
MLS# SR18224852

21011 Covello Street
Canoga Park, CA 91303

Property Type: Single Family Residence
$399,000 - 2Br/3Ba -  for Sale in Other - Othr, Tarzana
$399,000
New
MLS# 218014864

18411 Hatteras Street Unit 246
Tarzana, CA 91356

Property Type: Condominium
$395,000 - 2Br/2Ba -  for Sale in Encino
$395,000
New
MLS# SR18286219

5460 White Oak Avenue Unit C319
Encino, CA 91316

Property Type: Condominium