Cost of Long Island NY Homeownership Continues to Climb

The cost of Long Island NY homeownership continues to rise, and is now partly to blame for the recent housing woes.

The cost of Long Island NY homeownership continues to rise, but is still cheaper than renting.It had been thought that home sales had slowed due to unusual winter weather in many parts of the country, but buyers seem to be contradicting that theory now that spring has arrived.

According to an analysis by RealtyTrac, the average monthly payment for a three-bedroom home purchased in the fourth quarter of 2013 shot up by 21 percent in the past year. The calculation includes the estimated cost of a mortgage, homeowners insurance, property taxes and maintenance and subtracts the estimated income tax benefit.

 

Average Cost of Long Island NY Homeownership Still Cheaper Than Renting

The average monthly house payment for a three-bedroom home in the 325 counties included in the analysis was $865 in the fourth quarter of 2013, based on a 30-year fixed rate mortgage with an interest rate of 4.46 percent and a 20-percent down payment. That's up from $714 for the same size home in the fourth quarter of 2012, using an interest rate of 3.35 percent.

The rise is due to median home price increases of 10 percent in the 325 counties, along with that increase in the average 30-year fixed mortgage rate, as reported by Freddie Mac.

The danger in the affordability statistics is that median monthly incomes (the minimum income needed to qualify for a median-priced home) are not keeping pace with the rising cost of homes. Even with the increase in the cost of Long Island NY homeownership with a mortgage, it's still cheaper to own here and in 91 percent of the counties analyzed than it is to rent a three-bedroom home.

Check out our other articles and news affecting Long Island NY homeownership and the Long Island NY real estate market in general by clicking on the Long Island NY Real Estate News link to your right under Long Island NY Real Estate Categories.