San Diego Housing Market News and Analysis
Housing costs less than half compared to 2006
User Forum Topic
Submitted by ninaprincess on October 25, 2011 - 10:39am
This house, sold for $630,000 and now sold for $400,000.
The 30-yr morgate rate in 2006 was 6.5%, now it is 4.2%. Assumming that the buyer was/is borrowing 100%. The payment is $3,960 vs. $1,949. The new payment is about half and we are not even factoring the 10% to 15% inflation that has occured in five years. I believe it costs about $2,100-$2,300 to rent a house similar to this right now so it is cheaper to buy than to rent right now even for houses.
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