Apr 18 2018 37064 1

Dated: 04/18/2018

Views: 95

US Housing Market Still In ‘Buy Territory’!

US Housing Market Still In ‘Buy Territory’!

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.

Blog author image

Irene Marie

Thank you for visiting my website. I am a real estate agent across the MS Gulf Coast. I can help you with questions on any property. First time home buyers have NO wrong questions. I can walk you t....

Latest Blog Posts

Thinking About Retirement

Why it might be better to take Social Security at age 66 instead of 70 - MarketWatchWhy it might be better to take Social Security at age 66 instead of 70 By Mark:

Read More

Questions For Investors

Answer These Top 5 Questions From InvestorsAPRIL 2018 | BY KATHY FETTKEWhether a client is looking to purchase a vacation home, multifamily apartment building, or primary residence with the

Read More

Homeowner Equity Is Growing

Homeowner Equity Growth Streak Continues DAILY REAL ESTATE NEWS | THURSDAY, JUNE 07, 2018 Homeowners with a mortgage saw their equity rise 13.3 percent year over year, according to CoreLogic’s

Read More

Would Mom Be Proud Of Your Business

Would Mom Be Proud of Your Business?Posted in Book Reviews, by Meg White on May 7, 2018When my husband was interviewing for his current job, his future boss warned him that he has

Read More