Vacation Home Property Sales Surge
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 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.
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.
People Are Still Moving, Even with Today’s Affordability Challenges
It’s true that buying a home has become more expensive over the past couple of years, but people are still moving.
The Latest 2024 Housing Market Forecast
The housing market is expected to be more active in 2024 and that may be in part because there will always be people whose lives change and need to move.
Thinking About Using Your 401(k) To Buy a Home?
Before you decide to dip into your retirement to buy a home, be sure to consider all possible alternatives and talk with a financial expert.
Homeowner Net Worth Has Skyrocketed
Buying a home can be a great way to grow your net worth, since home values have a tendency to rise over time, meaning you have more equity.
Reasons To Sell Your House Before the New Year
Selling now, while other homeowners may hold off until after the holidays, can help you get a leg up on your competition.
Don’t Believe Everything You Read About Home Prices
If you believe home prices are falling, it may be time to get your insights from the experts, and they’re saying prices are climbing.
Foreclosures and Bankruptcies Won’t Crash the Housing Market
Foreclosure filings are inching back up to pre-pandemic numbers, BUT they’re still way lower than when the housing market crashed in 2008.
Affordable Homeownership Strategies for Gen Z
One of your best resources on the journey as a young homebuyer is a trusted real estate agent.
The Perks of Selling Your House When Inventory Is Low
Buyers have fewer choices now than they did in more typical years. And that’s why you could see some great perks if you sell today.
Why Home Prices Keep Going Up
Even though higher mortgage rates has caused buyer demand to moderate, home prices are going back up is because there still aren’t enough homes for sale for all the people who want to buy them.