US Housing Market Still In ‘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 “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 13 of the 23 metropolitan markets examined moved further into buy territory, markets like Dallas, Denver, and Houston are currently deep into rent territory. Due to a lack of inventory, the home prices in these areas have increased by 6.7%, 6.3%, and 5.3%  respectively from a year ago.

According to Eli Beracha, Ph.D., Co-Creator of the index, home prices will begin to return to more normal levels.

“Our data indicates that prices are above their 40-year trend but not significantly so as they were in 2007. Rather than a crash, I anticipate slower growth in prices accompanied by longer marketing times for sellers and increasing inventories, which should bring prices back in conjunction with their 40-year trend.”

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.

Original Article from Simplifying the Market

Ken Keegan Real Estate Broker
(910) 523-0903 mobile
Email Me
www.KenKeegan.com
Click here for more information on Brunswick, County Real Estate
St. James Plantation

3561 Sanderling Drive SE
St. James Plantation

$469,000

 You are overtaken by grandeur the moment you enter the foyer with the sky faux painted barrel ceiling that reaches 17 feet. The feeling continues throughout the first floor with 12-foot ceilings. Kitchen features include four stained glass windows, specialty cabinetry, granite, Bosch dishwasher and a two-sided fireplace shared with the den. The master suite has a trey ceiling with recessed lighting, large closet and a master bath with a chandelier over the tub! Every room offers special details so ask your realtor for the special features sheet. The unlimited horizon view from the rear deck or screened gazebo overlooks four lakes and the signature hole of the Hale Irwin designed Members golf course.

Ken Keegan Real

Estate Broker

(910) 523-0903 mobile

Email Me

www.KenKeegan.com

Click here for more information on Brunswick, County Real Estate

St. James Plantation

Buying A Home Is More Affordable Than Renting In 54% Of US Counties

According to ATTOM Data Solutions’ 2018 Rental Affordability Report, “buying a median-priced home is more affordable than renting a three-bedroom property in 240 of 447 [or 54% of] U.S. counties analyzed for the report.”

For the report, ATTOM Data Solutions compared recently released fair market rent data from the Department of Housing and Urban Development with reported income amounts from the Department of Labor and Statistics to determine the percentage of income that a family would have to spend on their monthly housing cost (rent or mortgage payments).

Daren Blomquist, Senior Vice President of ATTOM Data Solutions had this to say:

“Although buying is still more affordable than renting in the majority of U.S. housing markets, the majority is shrinking as home price appreciation continues to outpace rental growth in most areas.”

However, the report also shows that the average fair market rent rose faster than average weekly wages in 60% of the counties analyzed in the report (266 of 447 counties). With rents rising, many renters should consider buying a home soon.

Full Article from Simplifying The Market

Ken Keegan Real Estate Broker
(910) 523-0903 mobile
Email Me
www.KenKeegan.com
Click here for more information on Brunswick, County Real Estate
St. James Plantation

The Tax Cuts and Jobs Act - What it Means for Homeowners and Real Estate Professionals

The National Association of REALTORS® (NAR) worked throughout the tax reform process to preserve the existing tax benefits of homeownership and real estate investment, as well to ensure as many real estate professionals as possible would benefit from proposed tax cuts. Many of the changes reflected in the final bill were the result of the engagement of NAR and its members, not only in the last three months, but over several years.

Article Continued

Ken Keegan Real Estate Broker
(910) 523-0903 mobile
Email Me
www.kenkeegan.com
Click here for more information on Brunswick, County Real Estate
St. James Plantation