Rents are rising. Not just here in Atlanta but around the country, so says a recent report published by the U.S. Census Bureau. I imagine that if you’re a renter now, this is not news to you. However, what may be news to you is that as rents rise, it becomes more and more possible for more families to find a home with a mortgage payment that’s less than a rent payment in a similar-sized home. Could this be true for you? The only way to be sure is for us to look into your specific situation together. In the meantime, this is what I know about the housing market here in Atlanta and what you can do to take control of your housing situation.
- Rents in Atlanta continued their rise in 2016 by at least 4.5 percent, even though the supply of new rentals increased. In fact, rents in Atlanta are the 17th highest in the nation and rising. Here’s the good news…if you’re paying the average $1,700 for a two-bedroom rental, it’s likely a median-priced home would be substantially less per month – keep reading below for the details.
- Home appreciation in Atlanta remains robust. Just this week it was reported that home’s in Atlanta appreciated by 6.29 percent, according to the Case-Shiller Home Price Index. Keep in mind that by owning a home, you get the advantage of that appreciation working in your favor, building a financial future for yourself and your family, rather than paying higher rent because of it.
So, the question remains, can you afford to buy a home rather than rent? Let’s take a look at the numbers! According to the Atlanta REALTORS®, the median home price in Atlanta now is $225,000. If you purchased a home at that price and were able to put 20 percent down and get a 30-year mortgage at four percent your monthly mortgage payment—before taxes and insurance—would be about $772 per month. Of course there are lots of options on down payments, home price etc, but you get the idea.
So, if you’re feeling the pinch of rising rents and not so hot on the instability of being a renter this may be a great time for you to buy. We have yet to hit the peak home-buying season so now is a great time to find some hidden gems. If you’re curious about your specific situation, give me a call, let’s talk it over and come up with a plan.