We were intrigued to read a new report from Zillow, demonstrating that the Albuquerque area is performing relatively well in terms of housing affordability.
Called the Breakeven Horizon, the report, by Zillow, estimates the number of years you would have to live in your home for buying it to have been more cost effective than renting it.
The report takes a number of factors into account, including expected growth in rents and home values, price-to-rent ratios and mortgage interest rates.
Zillow reports that, as of the end of final quarter of 2016, the national Breakeven Horizon time was 1 year and 11 months, which equates to about 20 days longer than the same period a year earlier.
In more expensive markets, such as San Jose, California, there’s a Breakeven Horizon of 5 years and 2 months, illustrating the stark contrasts that exist across the nation.
Naturally we were curious to see how the Albuquerque area is performing, so we followed this link to Zillow’s report and consulted its nationwide map.
It transpires that the area is doing relatively well, with a Breakeven Horizon, nicely below the national average, of 1 year and 8 months.
This figure has been helped by the fact that, although we have seen home price inflation, it’s been quite steady and measured, unlike many other areas that have seen much higher percentage price increases.
Indeed, Zillow says that Breakeven Horizons are actually shortening in more affordable cities.
It also provides further evidence of what a great time it is to buy in the area right now. And, when you think of it, a Breakeven Horizon of under two years is another great incentive to break the renting cycle.
Most people will live in their home much longer than a couple of years, so even taking a quite short term view yet again proves how relatively quickly most purchasers recover from the costs of buying and start to reap the fiscal rewards of home ownership. And let’s not forget that other rewards, such as total independence and not having to live by someone else’s rules, are benefits that everyone enjoys from the moment they receive the keys! Those are advantages you just cannot put a price on!
As we often say in this blog, right now is really such a great time to stop renting. Why not contact us today for an informal discussion about what’s best in your own situation.
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The Romero Team is a group of top New Mexico REALTORS that works together to provide only the best service to each and every client whether it be buying or selling Real Estate in New Mexico. Find FREE Home Valuations, Market Data, and all Information about Buying or Selling a Home in Albuquerque, Santa Fe, Rio Rancho, Corrales, Placitas and Valencia County. The Team provides expert representation in many areas including home sales and marketing, serving as Buyers Agent, luxury homes, and vacant land.
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