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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$515,000 - 2Br/3Ba -  for Sale in Tarzana
$515,000
Open House
New
MLS# BB19109998

18701 Hatteras Street Unit 5
Tarzana, CA 91356

Property Type: Townhouse
$839,000 - 3Br/2Ba -  for Sale in Lake Balboa
$839,000
Open House
New
MLS# SR19119596

6828 Encino Avenue
Lake Balboa, CA 91406

Property Type: Single Family Residence
$2,195,000 - 5Br/5Ba -  for Sale in Tarzana
$2,195,000
Open House
New
MLS# SR19120549

4955 Casa Drive
Tarzana, CA 91356

Property Type: Single Family Residence
$1,498,000 - 4Br/4Ba -  for Sale in Tarzana
$1,498,000
Open House
New
MLS# SR19120669

4608 La Barca Drive
Tarzana, CA 91356

Property Type: Single Family Residence
$539,900 - 3Br/2Ba -  for Sale in Canoga Park
$539,900
Open House
New
MLS# SR19120036

22230 Strathern Street
Canoga Park, CA 91304

Property Type: Single Family Residence
$1,998,000 - 5Br/7Ba -  for Sale in Bell Canyon
$1,998,000
New
MLS# SR19120701

125 Saddlebow Road
Bell Canyon, CA 91307

Property Type: Single Family Residence
$829,000 - 4Br/2Ba -  for Sale in Tarzana
$829,000
New
MLS# 19469548

19123 Collins Street
Tarzana, CA 91356

Property Type: Single Family Residence
$599,000 - 4Br/3Ba -  for Sale in Van Nuys
$599,000
New
MLS# AR19120641

15407 Saticoy Street
Van Nuys, CA 91406

Property Type: Single Family Residence
$319,000 - 2Br/2Ba -  for Sale in Encino
$319,000
New
MLS# SR19118652

5460 White Oak Avenue Unit K202
Encino, CA 91316

Property Type: Condominium
$1,100,000 - 4Br/3Ba -  for Sale in Northridge
$1,100,000
Open House
New
MLS# SR19120850

17161 Halsted Street
Northridge, CA 91325

Property Type: Single Family Residence
$510,000 - 2Br/2Ba -  for Sale in Other - Othr, Encino
$510,000
New
MLS# 219006248

5353 Yarmouth Avenue Unit 207
Encino, CA 91316

Property Type: Condominium
$570,000 - 3Br/2Ba -  for Sale in Winnetka
$570,000
New
MLS# SR19107215

8532 Casaba Avenue
Winnetka, CA 91306

Property Type: Single Family Residence
$289,000 - 2Br/2Ba -  for Sale in Tarzana
$289,000
New
MLS# SR19120771

18620 Hatteras Street Unit 224
Tarzana, CA 91356

Property Type: Condominium
$800,000 - 4Br/3Ba -  for Sale in Northridge
$800,000
Open House
New
MLS# SR19121055

17051 Labrador Street
Northridge, CA 91325

Property Type: Single Family Residence
$549,000 - 2Br/3Ba -  for Sale in Encino
$549,000
New
MLS# 19469932

5350 White Oak Avenue Unit 314
Encino, CA 91316

Property Type: Condominium
$599,995 - 3Br/1Ba -  for Sale in Van Nuys
$599,995
Open House
New
MLS# 19469410

15445 Lemay Street
Van Nuys, CA 91406

Property Type: Single Family Residence
$285,000 - 1Br/1Ba -  for Sale in Tarzana
$285,000
New
MLS# SR19115874

18645 Hatteras Street Unit 247
Tarzana, CA 91356

Property Type: Condominium
$680,000 - 4Br/2Ba -  for Sale in West Hills
$680,000
Open House
New
MLS# SR19120587

7924 Maynard Avenue
West Hills, CA 91304

Property Type: Single Family Residence
$564,950 - 3Br/1Ba -  for Sale in Reseda
$564,950
New
MLS# SR19120598

6630 Jamieson Avenue
Reseda, CA 91335

Property Type: Single Family Residence
$1,999,000 - 4Br/5Ba -  for Sale in Encino
$1,999,000
Open House
New
MLS# SR19120710

17156 Margate Street
Encino, CA 91316

Property Type: Single Family Residence
$139,000 - 2Br/2Ba -  for Sale in Canoga Park
$139,000
New
MLS# 19469320

8801 Eton Unit 108
Canoga Park, CA 91304

Property Type: Manufacture 433
$775,000 - 4Br/3Ba -  for Sale in West Hills
$775,000
Open House
New
MLS# SR19119309

6515 Debs Avenue
West Hills, CA 91307

Property Type: Single Family Residence
$374,500 - 3Br/3Ba -  for Sale in Canoga Park
$374,500
New
MLS# SR19119996

6939 Alabama Avenue Unit 212
Canoga Park, CA 91303

Property Type: Townhouse
$500,000 - 3Br/3Ba -  for Sale in Northridge
$500,000
Open House
New
MLS# SR19119418

17820 Devonshire Street Unit 6
Northridge, CA 91325

Property Type: Townhouse
$259,000 - 1Br/2Ba -  for Sale in Encino
$259,000
New
MLS# 19469168

5460 White Oak Avenue Unit C307
Encino, CA 91316

Property Type: Condominium
$599,999 - 3Br/2Ba -  for Sale in West Hills
$599,999
New
MLS# SR19043346

8380 Farralone Avenue
West Hills, CA 91304

Property Type: Single Family Residence
$669,000 - 3Br/2Ba -  for Sale in Canoga Park
$669,000
New
MLS# SR19117669

7839 Farralone Avenue
Canoga Park, CA 91304

Property Type: Single Family Residence
$712,500 - 3Br/2Ba -  for Sale in West Hills
$712,500
Open House
New
MLS# SR19119765

6648 Sheltondale Avenue
West Hills, CA 91307

Property Type: Single Family Residence
$639,000 - 4Br/2Ba -  for Sale in Reseda
$639,000
Open House
New
MLS# SR19032031

7908 Yarmouth Avenue
Reseda, CA 91335

Property Type: Single Family Residence
$445,000 - 2Br/2Ba -  for Sale in Woodland Hills
$445,000
Open House
New
MLS# SR19117467

21520 Burbank Boulevard Unit 301
Woodland Hills, CA 91367

Property Type: Condominium