It is Better to Buy than Rent - Real Estate and Technology News for Agents, Broker

It is Better to Buy than Rent

Home buying in Colorado is still a better option than renting, especially since apartment vacancies are at a 10-Year low and rent prices have increased statewide.

A home buyer purchasing a typical 2 bedroom home in Denver at current average interest rates would have a mortgage payment of approximately $965 a month. Denver's average home sale price from August to October 2011 was $192,000. (Monthly costs based on 4.25% interest rates with a 20% down payment.)

"Denver's overall cost of living is 35% above the national average, so it's not the cheapest place to live." states Trulia, a real estate data website. The median price for apartment rentals is $700 in the Denver area with rents ranging all the way up to $2,000 a month depending on location, size and amenities.

In Colorado Springs, the average home sale price is $178,549, which calculates out to be approximately $900 a month, based on 4.25% interest rate and a 20% down payment.

"Colorado Springs enjoys an overall cost of living that's 29% below the national average. Apartment rentals are lower-priced here than in Denver." states Trulia. The average price for apartments is $640 per month with amenity-rich apartments going for $800 and up.

The National Association of Realtors recently reported that 30-Year Mortgage rates have fallen below 4%, for the first time in thirty years. "Expect mortgage rates to average something closer to a 4.5 percent rate by spring of next year and possibly hit 5.0 percent one year from now." predicts NAR Chief Economist, Lawrence Yun. "A lower mortgage rate in later months is not likely."

So depending on what you are looking for, home buying is still an affordable option versus renting. Take advantage of low interest rates and low prices on homes and hire a professional REALTOR® to help you decide if buying a home is an option for you.

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