Our local housing market feels like everyone is holding their breath to see what happens next. Here is a quick rundown of what things feel like at my desk.
The usual disclaimers apply: Not everyone will qualify for financing, and rates and scenarios are subject to change.
Looking at homes for sale in Tehachapi right now, the bottom of our market appears to be priced around $200,000. We’ll assume those houses are for first-time buyers, or for folks wanting to downsize. And, rent for a single-family house appears to hover around $1500/month. This is not a scientific survey, but should be a good approximation.
So, in using the lowest down payment loan scenarios, if you can afford to rent a house right now, your house payment would be equal to, or less than, rent. That is to say, buying is as affordable as renting, as compared across three common loan programs.
What does this mean for buyers? As our economy heats up, interest rates are likely to rise. Even though this means only about $16/month in these scenarios, maybe you shouldn’t be waiting on the sidelines just because of rates. And, at present we still seem to have a shortage of lower-priced homes, so you might want to be pre-qualified now in case an opportunity arises.
Buying a home is the largest financial undertaking most of us will ever have. Please get in-depth advice from your local, experienced mortgage provider to be sure you are informed about the timing of your own next home purchase.
Tammy Engel is your local Mortgage Advisor, and has been working for your best interest since 1990. Contact her at 661/822-7325 for a custom quote about your purchase, refinance, or reverse mortgage. NMLS #235051 CaDRRE#01273839