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.

 

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$559,000 - 2Br/1Ba -  for Sale in Lake Balboa
$559,000
New
MLS# SR18120126

17613 Cohasset Street
Lake Balboa, CA 91406

Property Type: Single Family Residence
$545,000 - 2Br/3Ba -  for Sale in Other - Othr, Tarzana
$545,000
New
MLS# 818002416

18713 Hatteras Street Unit 7
Tarzana, CA 91356

Property Type: Townhouse
$459,999 - 2Br/3Ba -  for Sale in Tarzana
$459,999
New
MLS# SR18119675

18210 Oxnard Street Unit 141
Tarzana, CA 91356

Property Type: Condominium
$1,700,000 - 4Br/3Ba -  for Sale in Tarzana
$1,700,000
New
MLS# CV18118525

4602 Monarca Drive
Tarzana, CA 91356

Property Type: Single Family Residence
$1,099,000 - 3Br/3Ba -  for Sale in Woodland Hills
$1,099,000
New
MLS# SR18119361

5735 Rolling Road
Woodland Hills, CA 91367

Property Type: Single Family Residence
$379,000 - 2Br/2Ba -  for Sale in Lake Balboa
$379,000
Open House
New
MLS# SR18119500

16741 Vanowen Street Unit H
Lake Balboa, CA 91406

Property Type: Townhouse
$499,750 - 2Br/3Ba -  for Sale in Canoga Park
$499,750
New
MLS# SR18119373

8624 De Soto Avenue Unit 131
Canoga Park, CA 91304

Property Type: Townhouse
$110,000 - 2Br/1Ba -  for Sale in Van Nuys
$110,000
New
MLS# SR18119429

7650 Balboa Blvd. Unit 112
Van Nuys, CA 91406

Property Type: Manufacture 433
$899,000 - 3Br/2Ba -  for Sale in Van Nuys
$899,000
Open House
New
MLS# 18346168

6860 Orion Avenue
Van Nuys, CA 91406

Property Type: Single Family Residence
$739,000 - 4Br/3Ba -  for Sale in Corbin Palms, Woodland Hills
$739,000
New
MLS# 18346206

19858 Friar Street
Woodland Hills, CA 91367

Property Type: Single Family Residence
$329,000 - 2Br/2Ba -  for Sale in Canoga Park
$329,000
Open House
New
MLS# 18346252

7254 Vassar Avenue Unit 201
Canoga Park, CA 91303

Property Type: Condominium
$6,995,000 - 7Br/9Ba -  for Sale in Encino
$6,995,000
New
MLS# 18346268

5180 Louise Avenue
Encino, CA 91316

Property Type: Single Family Residence
$639,000 - 3Br/2Ba -  for Sale in Reseda
$639,000
New
MLS# SR18119247

7322 Lindley Avenue
Reseda, CA 91335

Property Type: Single Family Residence
$580,999 - 4Br/2Ba -  for Sale in Reseda
$580,999
New
MLS# SR18119930

6612 Nestle Avenue
Reseda, CA 91335

Property Type: Single Family Residence
$599,000 - 4Br/2Ba -  for Sale in Other - Othr, Canoga Park
$599,000
New
MLS# 218006134

22122 Roscoe Boulevard
Canoga Park, CA 91303

Property Type: Single Family Residence
$499,950 - 3Br/1Ba -  for Sale in Lake Balboa
$499,950
New
MLS# SR18118801

16901 Covello Street
Lake Balboa, CA 91406

Property Type: Single Family Residence
$575,000 - 3Br/1Ba -  for Sale in Northridge
$575,000
New
MLS# SR18118899

8503 Newcastle Avenue
Northridge, CA 91325

Property Type: Single Family Residence
$979,950 - 3Br/3Ba -  for Sale in Other (othr), Encino
$979,950
New
MLS# SR18115695

5831 Wish Avenue
Encino, CA 91316

Property Type: Single Family Residence
$1,270,000 - 4Br/5Ba -  for Sale in West Hills
$1,270,000
New
MLS# SR18116520

7554 Graystone Drive
West Hills, CA 91304

Property Type: Single Family Residence
$1,080,000 - 4Br/3Ba -  for Sale in Woodland Hills
$1,080,000
New
MLS# 18345972

23920 Calvert Street
Woodland Hills, CA 91367

Property Type: Single Family Residence
$1,229,000 - 4Br/4Ba -  for Sale in Tarzana
$1,229,000
New
MLS# OC18116713

5241 Wilbur Avenue
Tarzana, CA 91356

Property Type: Single Family Residence
$610,000 - 3Br/2Ba -  for Sale in Van Nuys
$610,000
New
MLS# SR18118653

15447 Covello Street
Van Nuys, CA 91406

Property Type: Single Family Residence
$335,000 - 1Br/1Ba -  for Sale in Encino
$335,000
New
MLS# SR18118305

5315 Zelzah Avenue Unit 18
Encino, CA 91316

Property Type: Condominium
$769,999 - 5Br/2Ba -  for Sale in West Hills
$769,999
New
MLS# SR18113377

6955 Royer Avenue
West Hills, CA 91307

Property Type: Single Family Residence
$559,950 - 4Br/2Ba -  for Sale in Lake Balboa
$559,950
New
MLS# SR18118795

17156 Burton Street
Lake Balboa, CA 91406

Property Type: Single Family Residence
$499,000 - 2Br/2Ba -  for Sale in Woodland Hills
$499,000
New
MLS# SR18116334

21301 Erwin Street Unit 314
Woodland Hills, CA 91367

Property Type: Condominium
$419,900 - 4Br/3Ba -  for Sale in Reseda
$419,900
New
MLS# SR18117973

8151 Canby Avenue Unit 6
Reseda, CA 91335

Property Type: Townhouse
$900,000 - 4Br/3Ba -  for Sale in Northridge
$900,000
New
MLS# SR18116404

17432 Citronia Street
Northridge, CA 91325

Property Type: Single Family Residence
$2,525,000 - 5Br/5Ba -  for Sale in Encino
$2,525,000
New
MLS# SR18117286

5309 Louise Avenue
Encino, CA 91316

Property Type: Single Family Residence
$1,199,000 - 5Br/4Ba -  for Sale in West Hills
$1,199,000
New
MLS# SR18117559

7538 Graystone Drive
West Hills, CA 91304

Property Type: Single Family Residence