In the world today with the perspective of the past five years and the “housing collapse” many have written that owning a home is less desirable the Renting. As in all things about housing, “national” trends may not be as applicable to any individual Market. We that live in Yellowstone are fortunate to have a stable and growing economy where most every segment has experienced some growth over since 2009. A few “facts” about Yellowstone County in July of 2014 the employment report indicates 82,419 persons employed in 2009 shows 77,985, an increase of 4,434. In July of 2019 the Freddie mac interest rate on a 30 year fixed rate loan was 5.22% July of 2014 the rate was 4.13% a decrease of 20.88%.
Moving on to the cost renting the “average” apartment rent for $686 per month in July 2014 $717 and increase of 4.5%. Looking at renting the average house 2009 the asking rent was $1,071 in July 2014 it was $1,164 an increase of 8.6%.
Now let’s look at the buying side at the, in July of 2009 the average sales price for a home was $197,354 which would translate into a monthly payment of $1,369. Move forward to 2014 the average sales price in July $243,220 an increase of $45,866 or 23.24%, not a bad increase in your equity the payment would be $1,486. Looking at the payment side in July 2009 it would have been $1,369 (PITI) July 2014 $1,486 an increase of 8.5% a smaller increase than that of renting a home, plus on average your net worth would have climbed approximately by $45,866.
Below is a set of four comparisons:
The first one is comparison of the average asking price for rent by type of home, by bedrooms and whether it has a garage or not to the corresponding purchase payment of a home with similar features.
The second one is comparison of the median asking price for rent by type of home, by bedrooms and whether it has a garage or not to the corresponding purchase payment of a home with similar features.
The third one is comparison of the average asking price for rent by type of apartment, by bedrooms and whether it has a garage or not to the corresponding purchase payment of a home with similar features.
The Fourth one is comparison of the median asking price for rent by type of apartment, by bedrooms and whether it has a garage or not to the corresponding purchase payment of a home with similar features.
With the information above and the information below, the question you have to ask “in Yellowstone County am I better off renting or Buying” you decide.
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