US Housing Market Continues the Move into ‘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 say
“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 most of the metropolitan markets examined moved further into buy territory (15 of the 23), markets like Dallas, Denver, and Houston are currently deep into rent territory. In these three markets, it is estimated that renting will top homeownership 7 out of 10 times.
Due to a lack of inventory, the home prices in the Dallas, Denver, and Houston, areas have increased by 13%, 11.4%, and 7.3% respectively. Home prices in these areas will begin to return to more normal levels once residents realize that renting is not the best option, 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, 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.
How Buying or Selling a Home Benefits Your Community
It makes sense that housing creates a lot of jobs because so many different kinds of work are involved in the industry.
What More Listings Mean When You Sell Your House
if you’re considering whether or not to list your house, today’s limited supply is one of the biggest advantages you have right now.
What You Really Need To Know About Home Prices
If you’re worried about if home prices will be coming down, here’s what you need to know.
Should I Move with Today’s Mortgage Rates?
While you could delay your plans until rates drop, you’ll only have more competition with those buyers if you do.
Tips for Younger Homebuyers: How To Make Your Dream a Reality
An agent will help you prioritize your list of home features and find houses that can deliver on the top ones.
Now’s a Great Time To Sell Your House
Late spring and early summer are generally considered the best times to sell a house as these are the seasons most people move and buyer demand grows.
Is It Getting More Affordable To Buy a Home?
Mortgage rates are expected to come down by the end of the year, making homebuying a little more affordable.
What Is Going on with Mortgage Rates?
Based on current market data, experts think inflation will be more under control and we still may see the Fed lower the Federal Funds Rate this year.
Is a Multi-Generational Home Right for You?
Looking for the perfect multi-generational home is a bit trickier than finding a regular house. A local real estate agent can help you out.
Should I Wait for Mortgage Rates To Come Down Before I Move?
When rates come down, more people are going to get back into the market leading to more competition.
