U.S. renters turn buyers as homes become affordable

Record-low interest rates and favorable home prices have resulted in some first-time home buyers realizing that it costs the same or less to own a house as it would to rent a comparable place to live.

MAKING SENSE OF THE STORY FOR CONSUMERS

· According to an executive at John Burns Real Estate Consulting, out of the 76 metropolitan area markets across the U.S. tracked by the company, approximately 50 percent show that a person can buy a house for less than renting when considering the after-tax cost of homeownership.


· In some areas of California, especially in Riverside and San Bernardino counties, monthly mortgage payments on single-family detached homes are significantly lower than apartment rents.


· By most measures, affordability is at a record high. The NATIONAL ASSOCIATION OF REALTORS®’ housing affordability index rose 13.6 percentage points in January to 166.8; the highest since tracking began in 1970. The CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) First-time Buyer Housing Affordability Index stood at 59 percent in the fourth quarter of 2008, meaning that more than half of California households could afford to purchase an entry-level home in the state.