Austin homebuyers reap the rewards of taking action!

There’s no doubt that some folks have been “on the fence” when it comes to buying a house – despite the first-time home buyer tax credits, bargain prices and rock-bottom interest rates.

A recently released report, however, shows that getting off that fence might be the best move. 

According to a national study conducted by the Associated Press, the gap between the cost of monthly rent payments and monthly mortgage payments is at its lowest point in 20 years. Which means, depending on your perspective, it’s never been more expensive to rent or never been less expensive to own a home in the past two decades.

According to the AP article on the study, the difference between median rent and median house payment in the 45 metropolitan areas surveyed was just $256, the lowest since it sat at $264 in 1993.

In metro areas harder hit by foreclosure, it’s even less of a gap. For instance, owning a home in Detroit might only cost $75 more per month than renting a comparable place. And the gap between renting and buying is closer to $200 in cities such as Cleveland, Orlando, Las Vegas and Atlanta.

When you calculate equity build-up and the tax benefits of owning, it makes you wonder why more people don’t get off the fence.

Of course, this buyer’s market won’t last forever. Prices are showing signs of recovery and interest rates are on the rise. Another interesting tidbit from the AP article: Home prices will rise before rents in most markets, meaning the gap will only be this close for so long.