On Monday, we gave you the links to four different articles that came to the same conclusion: it's time to buy a home. Today, we want to take a closer look at one of the sources, the JP Morgan's Market Insights report. Right from the beginning, the paper identifies the greatest challenge in today's housing market: consumer emotion. They attempt to overcome that emotion with logical reasons why now is the time to buy a home. They break it down to the following.
One measure of housing values is the ratio of personal income to home prices. The report explains where we are today:
Current Mortgage Interest Rates
With current 30 year mortgage rates, housing payments are at historic lows as compared to personal income.
Monthly Rent vs. Monthly Mortgage Payment
Is it less expensive to own a home or rent a home? The answer to this question helps families make the decision whether or not to buy a home. The report explains:
The paper comes to the conclusion that now is the time to buy.
News for Prescott AZ - AmericanTowns.com
Wednesday, November 02, 2011
Is It Really Time to Buy a Home?
Posted by Brad Bergamini at 8:12 PM