A Safe Haven From Soaring Rents
New Central PA Homes For Sale Offer A Safe Haven From Soaring Rents
According to Zillow renting became twice as expensive as buying a home as we moved into 2015. So has mortgage lending eased enough for you to take advantage of new homes for sale in Harrisburg, Camp Hill, Mechanicsburg, PA? Can local residents afford not to buy?
Renting Becoming Unaffordable in America
The latest data from Zillow shows that the minimum hourly wage needed to rent the median priced rental in Philadelphia is now $24 an hour. While that is less than in New York or Washington DC, and substantially less than the $100 to $200 dollar an hour minimum wage you’ll need to rent in parts of California or Florida, we’re just seeing the tip of the iceberg.
The Pennsylvania Association of Realtors and MarketWatch reports that rents are now rising at their fastest pace in almost a decade. According to Zillow this is twice as fast as incomes are rising. Of course price isn’t the only challenge. The US Census Bureau reports that rental vacancies are at their lowest in 20 years. In fact, landlords have become so spoiled that their rigorous and expensive application processes making getting a mortgage in PA seem like a breeze in comparison.
PA Mortgages Made Easy
It’s a lot easier to get a great home loan in Central PA today than most think, even for first time home buyers. The government has been putting significant pressure on banks and lenders to make more purchase mortgage loans, and lenders are beginning to more aggressively compete with each other for business.
There are now an even wider choice of low and no down payment. In addition to FHA’s low down payment loans there are 100% financing options in the form of VA loans, USDA mortgages, and from credit unions like Navy Federal. Plus, Fannie Mae and Freddie Mac have announced the return of the 3% down mortgage loan for lower and medium income buyers.
As of January 1st, 2015 Zillow mortgages had reported the average rate quoted to borrowers was just 3.72%. For a $200,000 loan that means a monthly principal and interest payment of just $922.83. That’s less than half of what some studios rent for in Philly. And it’s enough to purchase a brand new home in Harrisburg, Mechanicsburg or Camp Hill, PA, and potentially with less money out of pocket.
Dauphin County home buyers may even find they are eligible for one of an array of local Pennsylvania housing assistance programs for help with down payments and closing costs.
Check out the following links for more details:
Can You Afford to Wait?
This question is about far more than the current difference between rents and the inexpensiveness of buying a home in PA. This spread will only keep widening. Rents are only expected to keep heading up, while homeowners enjoy seeing their wealth grow in home equity.
Once we get deeper into tax season we’ll also see more buyer activity and competition. Those that get ahead and lock in great contracts now, even if they don’t close until they receive their income tax refunds, will be ahead of the game and privy to the best deals.
Don’t forget to connect with us on Facebook and Google+, and come back to check out more details on new 3% down Freddie Mac loans, and hot tips on home buying from your favorite Mechanicsburg Realtors.