US Housing Market Moving Further into ‘Buy Territory’

US housing marketI know I keep talking about the benefits of buying versus renting but I keep reading articles that support my argument!  The latest Buy vs Rent Index shows that when you compare owning a home to renting a buying stocks and bonds it is overwhelming a better investment to buy a home.  There are only three markets in Texas where the home prices are so high an investment portfolio is a better idea.  What are you waiting for?  I can’t stress enough the importance of home ownership in this market with low prices and low interest rates.  Let’s get going and find you a home that you can enjoy this Christmas!

 

Courtesy Keeping Current Matters September 2016

According to the latest Beracha, Hardin & Johnson Buy vs. Rent (BH&J) Index, the U.S. housing market has continued to move deeper into buy territory, supporting the belief that housing markets across the country remain a sound investment.

The BH&J Index is a quarterly report that attempts to answer the question:

In today’s housing market, is it better to rent or buy a home?

The index examines the entire US housing market and then isolates 23 major cities for comparison. The researchers “measure the relationship between purchasing property and building wealth through a buildup in equity versus renting a comparable property and investing in a portfolio of stocks and bonds.” 

Ken Johnson, Ph.D., Real Estate Economist & Professor at Florida Atlantic University, and one of the index’s authors explains that:

“Housing prices, in general, continue to slow and when considered in light of the recent trends in the Buy vs. Rent Index signal that ownership remains an excellent investment for houstonthe majority of Americans.”

While 15 of the 23 metropolitan markets examined moved further into buy territory since last quarter, Dallas, Denver, and Houston are three of the major cities that are currently deep into rent territory. In these three markets, it is estimated that renting will top homeownership 7 out of 10 times.

Eli Beracha, Ph.D., Assistant Professor in the T&S Hollo School of Real Estate at FIU, believes that, in these three markets, the strong odds in favor of renting to create more wealth should stock-exchange-642896__180begin to have an impact on the demand for home ownership and from that, impact property prices in these areas.”

Simply put, home prices in these areas will begin to return to more normal levels once residents realize that renting may be a better choice, therefore bringing home affordability back as well.

Bottom Line

The majority of the country is strongly in buy territory. Buying a home makes sense socially and financially. Rents are predicted to increase substantially in the next year. Protect yourself from rising rents by locking in your housing cost with a mortgage payment now.

To Find Out More About the Study: The BH&J Index and other FAU real estate activities are sponsored by Investments Limited of Boca Raton. The BH&J Index is published quarterly and is available online at http://business.fau.edu/buyvsrent.

Don’t let our Naples prices get too high for you to afford.  We are in a lull in our market and now is the time to step in and find out how much home you can afford.  I am ready to find you a home; are you?

Remember it is always toasty in Naples and you deserve your piece of Naples sunshine and a home at an affordable price with an affordable mortgage payment.

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