Renting a 2 bedroom apartment in Bay Area is average ranging from $1800 – $2500 per month. For some prime area, it could be even higher. Should you rent or buy a house now?
There are many reasons that you should consider buying a house now:
1. Interest rate are still low – it could go higher soon as economy improving. Now a 30-year-fixed-rate loan averages 4% – 4.25%, still very low.
2. More inventory now compares to last year.
3. Price still going up – a lot of area still lower than the peak in 2008.
4. Rents are too high – it makes sense to pay your own mortgage on your house than to pay your landlord’s mortgage on renting. With rent so high, low interest rate has a great advantage in buying.
5. Employment is improving – better economy and steady employment create a healthy housing market on demand in buying.