Apr 9 2018

Dated: 04/09/2018

Views: 96

US Housing Market Still In 'Buy Territory'!

US Housing Market Still In ‘Buy Territory’! | Keeping Current Matters

According to the 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.” 

While 13 of the 23 metropolitan markets examined moved further into buy territory, markets like Dallas, Denver, and Houston are currently deep into rent territory. Due to a lack of inventory, the home prices in these areas have increased by 6.7%6.3%, and 5.3% respectively from a year ago.

According to Eli Beracha, Ph.D., Co-Creator of the index, home prices will begin to return to more normal levels.

Our data indicates that prices are above their 40-year trend but not significantly so as they were in 2007. Rather than a crash, I anticipate slower growth in prices accompanied by longer marketing times for sellers and increasing inventories, which should bring prices back in conjunction with their 40-year trend.”

Bottom Line

The majority of the country is strongly in buy territory. Buying a home makes sense socially and financially, as 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.

Want to Advertise on this Site?

Latest Blog Posts

Oct 15 2018 20790 1

PRE-APPROVAL: YOUR 1ST STEP IN BUYING A HOME In many markets across the country, the number of buyers searching for their dream homes outnumbers the number of homes for sale. This

Read More

Home Sales Are Going Up

New Home Sales Up 12.7% From Last Year According to the latest New Residential Sales Report from the Census Bureau, new construction sales in August were up

Read More

Halloween Clean Up Hacks

How to Get Wax Out of Carpet and Other Halloween Cleanup Hacks Cleaning egg off your house is the first thing to tackle. The wax can wait. A week ago you were worried about how

Read More

Oct 1 2018 20790 1

WHERE ARE MORTGAGE INTEREST RATES HEADED IN 2019? The interest rate you pay on your home mortgage has a direct impact on your monthly payment; the higher the rate, the greater the payment

Read More