The answer to that question is a resounding YES, according to Trulia, a residential real estate and data trending group. The group recently compiled data that examined homes for sale and homes for rent in the top 100 metro areas considered the largest in the country, including Worcester, Massachusetts. The data came from its database for listings in the months of June, July and August of this year. In every single market buying a home was less expensive than renting one, and by a big margin. It also stayed that way over a seven year period.
In fact, currently it is 52 percent cheaper to buy a home in Worcester than to rent, according to the report. To rent a home in Worcester was estimated to be a little less than $1,900, which included security deposits and renters' insurance. The cost of owning a home in Worcester was estimated to be a little over $900, which also included maintenance costs, mortgage interest tax deductions and insurance. It also included estimated proceeds from selling the home after seven years of ownership.
Both Worcester and Peabody tied for the top spot in the state to save by buying over renting. Next was Springfield with an estimated 47 percent savings if you bought rather than rented a home. Even in Boston and Middlesex County you can save 41 to 45 percent respectively. The President of the Worcester Regional Association of Realtors said there really isn't a better time to buy. Part of the reason is the historically low mortgage rates making it so affordable to buy.
For people who typically rent right now may be the perfect time to consider making that purchase. Central Massachusetts has seen home values stabilize and sales are increasing every month. Price listings have gone up on a national level by 2.3 percent since August of 2011, whereas rent prices have increased by 4.7 percent, according to Truvia. And mortgage rates are unlikely to increase anytime soon, according to a recent Federal Reserve announcement.
Indeed, now may be the time to enlist the services of a professional to prepare for your next residential real estate transaction.
Source: Go Local Worcester, "Buying a Home 52 Percent Cheaper than Renting in Worcester," Adam Joseph Drici, Sept.19, 2012
Our Worcester law firm handles a wide range of residential real estate issues, including home sales, mortgage financing and refinancing, as well as foreclosure and title searches.