The #1 Question Home Buyers Are Asking

The #1 Question Home Buyers Are Asking

Is this the right time to purchase a home? This is truly a personal question as each buyer and their family has their own criteria, budget and real estate goals. However, we thought it would be helpful and informative to everyone who is renting to see a comparison of rental rates vs. mortgage payments.

Here is quick comparison based upon the rental market, housing prices and mortgage rates in real time, as of Feb 17th, 2023. Looking at data older than 30 days can give you a false read on the current market conditions.

Current Lease Stats (last 30 days)

• Single-Family Homes: Median Lease Rate of $2,025 for approximately 1,813 sf
• Condo/Townhomes: Median Lease Rate $1,500 for approximately 1,120 sf

Current Homes Stats (last 30 days)

Single-Family Homes

• Median Sales Price: $420,000 for approximate square footage of 1,878.
• Payments using a 3.5% down FHA Loan at 6% is approximately: $3,187

(principle + interest + property tax+ insurance + mortgage insurance)

To keep your mortgage within 10% of the median lease rate, the purchase price would need to be around $300,000. In the last 30 days in the market, median square footage for homes sold between $290,000 and $325,000 was 1,300 sf.

The other option is to save more down payment to reduce the monthly mortgage. For a purchase price of $420,000 with 20% down on a conventional loan, the mortgage payment would be about $2,318. This aligns closer to the current lease rates.

Condos & Townhomes

• Median Sales Price: $255,000 for approximate square footage of 1,163 
• Payments using a 3.5% down FHA Loan at 6% is approximately: $2,085

(principle + interest + property tax + insurance + mortgage insurance + association dues)

To keep your mortgage within 10% of the median lease rate, the purchase price would need to be around $185,000. In the last 30 days in the market, median square footage for condo-townhomes sold between $170,000 and $200,000 was 978 sf and only sold/available.

In summary, the questions to ask yourself if you are renting is how important is it for me to own my home, control my destiny and build up my net worth in my home versus keeping a monthly housing/lease payment as low as possible. Are you willing to purchase a home smaller than the one you are leasing, or in a different community? Or, are you ok with a higher mortgage payment than your current lease payment to stay in the same size and area?

If you have any questions about this data, please reach out to us.

Graham Team Real Estate • (702) 930-9551 • Team@grahamteamnv.com

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980 American Pacific Dr. Ste. 111 Henderson, NV 89014