Courtesy Tony Guaraldi, VP of Mortgage Lending
Is the market too crazy? Should 1st time home buyers “rent for a while until the market slows down” and throw in the towel for now? Does it still make sense to pay these home prices or are they better off renting right now?
Rent or Buy in Silicon Valley?
The answer as to whether or not they should buy a home vs. renting when you look at the numbers is resoundingly YES!!! Let’s take a look at this example in Campbell . . .
A current listing on the MLS today is 1360 Hoffman Ln Campbell, CA which is a 3 bed / 2 bath with 1,331 square feet for the bargain price of $949,000. The typical first time buyer starter home is now around 1M in Campbell. If we look at Craig’s List for a similar place to rent this morning you can find 1638 Ensenada Dr, Campbell which is also a 3 bed / 2 bath house that is 1,284 square feet that is listed for rent at 3,600 per month. Continue reading