The latest statistics are in: with interest rates hovering around 4.5% for a 30-year fixed rate mortgage, buying is 38% cheaper than renting as a national average, down from being 44% cheaper one year ago.
For example, if your rent is currently $1200 per month and you purchase a $175k home with a 3.5% down payment at a 4.5% interest rate, you would save approximately $8200 per year if home prices appreciated a modest 4% per year, or almost $50k savings over 6 years. Check out this cool buy vs rent calculator that will tell you exactly which option would benefit YOU most! Click Here
The margin between buying and renting narrowed during the past year due to rising prices around the country. But even though the gap has narrowed, this is still great news for buyers that have been able to recover from the economic recession and have managed to save enough for a down payment.
Especially during the past few months, there has been a noticeable shift in the Las Vegas real estate market, turning from investors and bank foreclosures or short sales, to "real" buyers and "real" sellers on both sides of the transaction. Currently, over 86% of the homes for sale in Las Vegas are "real" sellers. And with the end of the school season drawing near, the time when families traditionally make a move, this trend is predicted to become even stronger as the year progresses.
Another indication of a return to stability for Las Vegas housing is the fact that the inventory available has remained steady during the past 8 months, with the supply of single family homes actively available on the market at any given time hovering around the 6,500 mark. (Anything less than 11,000 homes on the market signals a seller's market, inventory levels between 11,000 homes and 14,000 homes indicate a balanced market, and over 14,000 homes favors the buyers.) While the total volume of sales in the first couple of months of 2014 is down from 2013, the consistent inventory levels forecast a solid growth for the year ahead, with gradual sustainable appreciation.
Team Leader, The Tonnesen Team
Berkshire Hathaway HomeServices, Nevada
3185 St Rose Pkwy #100 Henderson, NV 89052
With over 30 years of experience helping families call Las Vegas "home!"