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.
Not a Crash: 3 Graphs That Show How Today’s Inventory Differs from 2008
Inventory levels aren’t anywhere near where they’d need to be for prices to drop significantly and the housing market to crash.
Real Estate Still Holds the Title of Best Long-Term Investment
Homeownership has long been tied to building wealth—and for good reason.
What To Do When Your House Didn’t Sell
If you want an expert’s advice on why your home didn’t sell, rely on a trusted real estate agent.
Do Elections Impact the Housing Market?
While Presidential elections do have some impact on the housing market, the effects are usually small and temporary. For help navigating the market, election year or not, let’s connect.
How Long Will It Take To Sell My House?
You may be wondering how long the whole process is going to take. One way to get your answer? Work with a local real estate agent.
Housing Market Forecast: What’s Ahead for the 2nd Half of 2024
Here’s what experts say you should expect for home prices, mortgage rates, and home sales.
Why a Vacation Home Is the Ultimate Summer Upgrade
If you’re excited about getting away and having some fun in the sun, it might make sense to own your own vacation home.
What You Need To Know About Today’s Down Payment Programs
If you want more information on down payment programs, the best place to start is by contacting a trusted real estate professional.
Worried About Mortgage Rates? Control the Controllables
Remember, you can’t control what happens in the broader economy. But you can control the controllables.
Home Prices Aren’t Declining, But Headlines Might Make You Think They Are
Here’s what’s really happening with home prices.