With home prices continuing to increase and the rental market hitting record highs, Monica Malcuit of Signature Partners Realty has provided East County with rent vs. buy scenarios for three of the major East Contra Costa County cities.
In East County as a whole the rental market has jumped up nearly 8% across the board from the 1st quarter to the 2nd quarter this year. Across the nine-county San Francisco Bay Area, rents average $2,158 with the average rent in Contra Costa County being $1,609. This is fantastic news for landlords but bad news for renters.
Antioch
- 1st quarter median rental price was $1,785 per month and in the 2nd quarter it’s $1,950 per month
- A 4bd/2ba home at 2000sq ft is currently renting for $1950 a month valued at approximately $335k
- Purchasing that home utilizing FHA financing with 3.5% down, the monthly mortgage payment including principal, taxes, and insurance the monthly payment would be $2478
- Utilizing conventional financing with 5% down the monthly mortgage payment including principal, taxes, and insurance the monthly payment would be $2,303.
Brentwood
- 1st quarter median rental price was $2095 per month and in the 2nd quarter it’s $2195 per month
- A 4bd/2ba home at 1943sq ft is currently renting for $2195 per month valued at approximately $435k
- Purchasing that home utilizing FHA financing with 3.5% down, the monthly mortgage payment including principal, taxes, and insurance the monthly payment would be $3218
- Utilizing conventional financing with 5% down the monthly mortgage payment including principal, taxes, and insurance the monthly payment would be $2657
Oakley
- 1st quarter median rental price was $1875 per month and in the 2nd quarter it’s $2100 per month
- A 5bd/3ba home at 2400sq ft currently renting at $2100 per month valued at approximately $365k
- Purchasing that home utilizing FHA financing with 3.5% down, the monthly mortgage payment including principal, taxes, and insurance the monthly payment would be $2700
- Utilizing conventional financing with 5% down the monthly mortgage payment including principal, taxes, and insurance the monthly payment would be $2509
Malcuit explained that of course the more money you put down on a house, the lower the mortgage payment becomes. I’m merely using the examples of two minimum down payment programs.
“For many the thought of paying an extra $300 a month to own their own home may not seem feasible but if rents continue to rise on this trajectory, it may be inevitable for renters to be paying that anyway,” says Malcuit. “There are certainly benefits to home-ownership in terms of tax write offs, etc. Not to mention being at the mercy of the rental market by potentially having to move more often and increasing rents.”
In her opinion, if you’re looking to invest in the market and rents are on the rise, now is a terrific time to buy in.
“If you’re thinking of buying your first home, trading up or downsizing, now is also a terrific time to buy given the low interest rates and market stabilization. In addition, new construction in the area is booming which also indicates market improvement. The timing may not be right now for everyone, but if the possibility exists one should certainly look at their options,” said Malcuit.
Here is a look at a couple of Open Houses this weekend by Signature Partner Realty:
For more information about Monica Malcuit and Signature Partners Realty, visit www.antiochhomesalesguide.com or contact Monica at (925) 784-0214 or via email at
[email protected].
***mortgage payment scenarios provided by Jennifer Lawrie of WJ Bradley NMLS #208249
4 comments
Yyou know, if banks would specifically choose families who have been approved with good credit, than telling us an investor has the full amount in cash, maybe we would buy any one if the houses we’ve looked at. But, it must be that easy, if this realtor is saying it. Tell the truth. Normal families are rarely chosen to buy a house with the minimum down and financing lately.we are building our iwn bubble again, with bunch of foreign investors and rental homes.
So true, my brother had been looking for a house for over a year. He was pre qualified and all, but every house that he put a bid on, was purchased by investors with cash! I’m talking over 13 houses!
Great article.. keep those rental and home values rising. That is the secret to keeping the thugs and low lifes out of the city.
Higher home prices more income for the local emergency services.
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