This article from the Mortgage Daily News titled "Disparity in 'Severe Housing Costs' between Renters and Owners" is a bit chilling, but it's just another reason for hardworking individuals who currently rent to consider buying a home. In a nutshell, "the Center for Housing Policy today released a report on housing affordability among working households in the US. The report concludes an ongoing uptrend in the incidence of “severe housing costs” among 'working renters' whereas 'working owners' actually saw a decrease from 2010 to 2011."
Bottom line, between the years 2008 and 2011 working renters faced an increase in housing costs of 5.9% and a decrease in income of 3.2% while working homeowners saw a decrease in housing costs of 3.2% and a decrease in income of 4.2%. Thanks to the refinance boom homeowners have been able to decrease their housing costs. But this leaves renters at a huge disadvantage faced with an increasing housing cost burden, a trend that seems to be continuing with housing prices on the rise.
Today, we are STILL experiencing historically low interest rates. The housing market seems to have truly bottomed out and at least in this valley we are seeing housing prices move up. So renters, give your local mortgage professional a call and see if there's an opportunity for you to move into your new home!
Often, when someone calls me to get prequalified, it's a matter of putting together a plan that will get them to their goal. Sometimes we are ready and sometimes we need to work out credit issues or save a little more; whatever the case may be, it's worth checking it out.
I look forward to vising with you!
Susanne
208-761-9775
www.idahorealestateloans.com
