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Zillow: Buying now more affordable than renting

Posted on Tuesday, December 9, 2014 at 9:02:34 AM

Should you rent or should you buy? The answer to this question has flipped back and forth over the years, and a recent report from Zillow has found that now is a better time to buy a home.

At the moment, residential financing rates are low and the market is rebounding from the previous Great Recession. Zillow reported that median-income buyers, on average, spend only 15.3 percent of their monthly income on housing expenses. By comparison, renters dedicated 29.9 percent of their monthly income to rent.

"Despite rising home values, homeownership remains very accessible for buyers that can scrape together a down payment - even if that down payment is relatively modest - find a home to buy and secure financing," said Zillow chief economist Dr. Stan Humphries.

If you are interesting in buying, remember to keep in mind a few important elements. According to HGTV, you shouldn't be overly concerned with the current market. It is nearly impossible to time conditions perfectly. Instead, buy when your personal financial situation is best.

In addition, you should buy with resale in mind. While you may intend to stay put, choosing a property that has a high resale value will help you out in the long run.