To rent or to buy? Which is more affordable?
There are many reasons to consider buying over renting in South Carolina, and if the new year has you thinking of making a change, you are not alone. However, you may wonder if the dollars and cents add up in your favor as home prices continue to rise.
According to the ATTOM Data US Home affordability report, “Prospective homebuyers – especially first-time homebuyers do face some challenges entering the market. For the past two years, home prices have appreciated, and mortgage rates have doubled, making home purchase less affordable.”
However, homeownership is still the American Dream in South Carolina, and the mortgage industry has rallied to create programs to help make homes more affordable. Programs such as 2/1 buydown loans, transparent adjustable-rate loans, and Non-QM programs ease the pain for today’s buyers.
Now more than ever, it is crucial to work with your realtor and mortgage professional to prepare for market changes and to be ready when you find the right property.
“There is a scenario where affordability improves as we move through 2023. Wage growth continues to be strong; home prices appear to have stabilized and are even going down slightly; and mortgage rates may have peaked for this cycle and could gradually go down next year. If those conditions remain in place, the affordability picture is much brighter for a lot of potential buyers.”- said Rick Sharga, executive vice president of market intelligence at ATTOM.
If you’re considering buying a home this year, connect with one of our experienced loan officers today to discuss the options that match your budget.