Buying or selling a home can feel like a monumental endeavor. Kari Dye, Utah REALTOR has 16 years of experience and provides buyers and sellers with excellent customer service, honest professional advice and the highest ethical standards in the industry. Call her at 801-376-8404 or email her at firstname.lastname@example.org and check out her website at www.karidyerealtor.com!
Tuesday, June 14, 2016
US Housing Market Swings in Favor of Homeownership
According to the latest Beracha, Hardin & Johnson Buy vs. Rent (BH&J) Index, homeownership is a better way to produce greater wealth, on average, than renting. The results from the first quarter index showed that “16 of the 23 metropolitan markets investigated moved in the direction of buy territory.”
The BH&J Index is a quarterly report that attempts to answer the question:
Is it better to rent or buy a home in today’s housing market?
“The U.S. housing market, when considered as a whole, has swung marginally more in favor of home ownership over renting a comparable property and investing monthly rent savings in a portfolio of stocks and bonds.”
The latest results were released shortly after the S&P/Case-Shiller Home Price Index, which reported that home prices had climbed 5.4% nationally since March 2015.
Ken Johnson Ph.D., Real Estate Economist & Professor at Florida Atlantic University, and one of the index’s authors states:
“This [growth] appears to be driven by a steady but strengthening job market, rising rents relative to rising ownership costs and recent slower growth in traditional financial portfolios consisting of stocks and bonds.”
Dallas and Denver are two of the major cities that continued to move deeper into rent territory, but they moved at a slower rate than they had in previous quarters. Johnson believes that, in these two markets, “strong economic support…should make for a soft landing in terms of slowing property price growth, increased marketing time for properties and lower probabilities that sellers will actually transact and close during a given marketing effort of their property.”
Buying a home makes sense socially and financially. Rents are predicted to increase substantially in the next year, so lock in your housing cost with a mortgage payment now.