08-17-2009, 06:37 PM
Mortgages still havent fallen to the point where it makes more sense to buy rather than rent. I think the temporary resurgence in prices will be just that (my unfounded speculation).
Zillow says that the house we're in is over $600k. Rent for the neighborhood is pretty stagnant at $2500/mo. A $600k mortage @ 6% is over $3500/mo. Add in $500/mo in property taxes, and a 50% increase in 'buy' vs 'rent' costs is too significant of a gap for it to make sense unless you are rolling in a large big of equity into it - and even then, thats dicey.
IMO, a false bottom. Still waiting.
Zillow says that the house we're in is over $600k. Rent for the neighborhood is pretty stagnant at $2500/mo. A $600k mortage @ 6% is over $3500/mo. Add in $500/mo in property taxes, and a 50% increase in 'buy' vs 'rent' costs is too significant of a gap for it to make sense unless you are rolling in a large big of equity into it - and even then, thats dicey.
IMO, a false bottom. Still waiting.