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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$449,500 - 2Br/3Ba -  for Sale in Lake Balboa
$449,500
New
MLS# SR19039958

6824 Forbes Avenue
Lake Balboa, CA 91406

Property Type: Townhouse
$629,000 - 3Br/3Ba -  for Sale in Winnetka
$629,000
New
MLS# 19436424

7043 Corbin Avenue
Winnetka, CA 91306

Property Type: Single Family Residence
$669,000 - 5Br/3Ba -  for Sale in Lake Balboa
$669,000
Open House
New
MLS# CV19039793

6953 De Celis Place
Lake Balboa, CA 91406

Property Type: Single Family Residence
$579,000 - 2Br/1Ba -  for Sale in Woodland Hills
$579,000
Open House
New
MLS# PV19039564

22443 Clarendon Street
Woodland Hills, CA 91367

Property Type: Single Family Residence
$569,000 - 3Br/1Ba -  for Sale in Lake Balboa
$569,000
Open House
New
MLS# SR19039427

7457 Amestoy Avenue
Lake Balboa, CA 91406

Property Type: Single Family Residence
$949,000 - 4Br/2Ba -  for Sale in Van Nuys
$949,000
New
MLS# 19436518

15426 Lull Street
Van Nuys, CA 91406

Property Type: Single Family Residence
$459,000 - 2Br/2Ba -  for Sale in Woodland Hills
$459,000
Open House
New
MLS# BB19039255

5510 Owensmouth Avenue Unit 312
Woodland Hills, CA 91367

Property Type: Condominium
$648,000 - 4Br/2Ba -  for Sale in Tarzana
$648,000
Open House
New
MLS# SR19032121

6323 Canby Avenue
Tarzana, CA 91335

Property Type: Single Family Residence
$899,900 - 4Br/4Ba -  for Sale in Woodland Hills
$899,900
Open House
New
MLS# SR19035514

23963 Crosson Drive
Woodland Hills, CA 91367

Property Type: Single Family Residence
$1,895,000 - 5Br/5Ba -  for Sale in Tarzana
$1,895,000
New
MLS# 19436568

4952 Vanalden Avenue
Tarzana, CA 91356

Property Type: Single Family Residence
$1,099,000 - 4Br/3Ba -  for Sale in Encino
$1,099,000
Open House
New
MLS# SR19033658

6321 Balcom Avenue
Encino, CA 91316

Property Type: Single Family Residence
$639,000 - 4Br/2Ba -  for Sale in Not Applicable-win (nawin), Winnetka
$639,000
New
MLS# 319000694

6952 Lurline Avenue
Winnetka, CA 91306

Property Type: Single Family Residence
$700,000 - 3Br/2Ba -  for Sale in West Hills
$700,000
Open House
New
MLS# SR19035047

8304 Natalie Lane
West Hills, CA 91304

Property Type: Single Family Residence
$699,000 - 3Br/2Ba -  for Sale in Woodland Hills
$699,000
Open House
New
MLS# SR19038847

22207 Welby Way
Woodland Hills, CA 91303

Property Type: Single Family Residence
$714,000 - 3Br/2Ba -  for Sale in Woodland Hills
$714,000
New
MLS# SR19039757

23521 Styles Street
Woodland Hills, CA 91367

Property Type: Single Family Residence
$499,995 - 3Br/2Ba -  for Sale in West Hills
$499,995
New
MLS# SR19039999

22631 Gilmore Street
West Hills, CA 91307

Property Type: Single Family Residence
$1,299,000 - 4Br/3Ba -  for Sale in Bell Canyon
$1,299,000
New
MLS# 19436402

5 Baymare Road
Bell Canyon, CA 91307

Property Type: Single Family Residence
$520,000 - 3Br/2Ba -  for Sale in Northridge
$520,000
Open House
New
MLS# 19434230

8137 Bianca Avenue
Northridge, CA 91325

Property Type: Single Family Residence
$1,549,000 - 5Br/4Ba -  for Sale in Woodland Hills
$1,549,000
New
MLS# SR19038924

6145 Paseo La Vista
Woodland Hills, CA 91367

Property Type: Single Family Residence
$925,000 - 3Br/3Ba -  for Sale in Sherwood Forest
$925,000
Open House
New
MLS# SR19032333

8631 Shoshone Avenue
Sherwood Forest, CA 91325

Property Type: Single Family Residence
$699,000 - 3Br/2Ba -  for Sale in West Hills
$699,000
New
MLS# SR19037581

22954 Blythe Street
West Hills, CA 91304

Property Type: Single Family Residence
$899,900 - 4Br/3Ba -  for Sale in West Hills
$899,900
Open House
New
MLS# SR19038555

8008 Crothers Court
West Hills, CA 91304

Property Type: Single Family Residence
$549,900 - 4Br/2Ba -  for Sale in Canoga Park
$549,900
Open House
New
MLS# SR19038616

22110 Ingomar Street
Canoga Park, CA 91304

Property Type: Single Family Residence
$849,950 - 4Br/2Ba -  for Sale in Woodland Hills
$849,950
New
MLS# 19436116

6100 Manton Avenue
Woodland Hills, CA 91367

Property Type: Single Family Residence
$589,000 - 3Br/2Ba -  for Sale in Reseda
$589,000
Open House
New
MLS# 19436420

7733 Rhea Avenue
Reseda, CA 91335

Property Type: Single Family Residence
$489,000 - 2Br/2Ba -  for Sale in Encino
$489,000
Open House
New
MLS# 19435990

4950 Louise Avenue Unit 302
Encino, CA 91316

Property Type: Condominium
$569,900 - 3Br/2Ba -  for Sale in Winnetka
$569,900
Open House
New
MLS# SR19037964

20515 Gault Street
Winnetka, CA 91306

Property Type: Single Family Residence
$787,711 - 4Br/2Ba -  for Sale in West Hills
$787,711
Open House
New
MLS# SR19037566

8415 Sale Avenue
West Hills, CA 91304

Property Type: Single Family Residence
$210,000 - 1Br/1Ba -  for Sale in Reseda
$210,000
New
MLS# RS19038143

17900 Sherman Way Unit 516
Reseda, CA 91335

Property Type: Condominium
$1,284,000 - 4Br/3Ba -  for Sale in Tarzana
$1,284,000
New
MLS# SR19037779

19651 Anadale Drive
Tarzana, CA 91356

Property Type: Single Family Residence