Monthly Housing Costs On The Rise
Scott P. Rogers
It should come as no surprise that monthly housing costs are increasing, after all...
- Median sales prices are increasing -- 13% over the past three years.
- Mortgage interest rates are increasing -- 14% over the past three years.
- The real estate taxes rate is increasing -- 18% over the past three years.
Thus, the 22% increase in monthly housing costs over the past three years should not be too surprising.
For this analysis, I am measuring "monthly housing cost" by determining the mortgage payment amount (principal, interest, taxes and insurance) for a median priced home in Harrisonburg and Rockingham County, if a buyer were financing 80% of the purchase price and paying Harrisonburg real estate taxes.
Looking forward, I would expect that all three of these factors (prices, interest rates, tax rates) that influence housing costs would likely continue to increase.
