Such conditions might not last long.
Back in June 2006, when the housing market peaked, the prospect
of a five-year national housing bust seemed unimaginable to most
people.
of a five-year national housing bust seemed unimaginable to most
people.
And yet here we are, with the latest Standard & Poor's
Case-Shiller index showing that prices hit new bear-market lows,
falling back to 2002 levels nationally and to 1990s levels in
some battered regions.
Case-Shiller index showing that prices hit new bear-market lows,
falling back to 2002 levels nationally and to 1990s levels in
some battered regions.
Despite all the gloom, however, there are
growing indications that it is a good time to buy. Mortgage
rates, which fell to 4.55% for the week ending June 2, according
to Freddie Mac, are near 50-year lows. Homes have become more
affordable than they have been in years: According to Moody's
Analytics, the ratio of home prices to income is now 20.9% lower
than the 15-year average through 2010, and 12.5% lower than the
1989-2004 average.
growing indications that it is a good time to buy. Mortgage
rates, which fell to 4.55% for the week ending June 2, according
to Freddie Mac, are near 50-year lows. Homes have become more
affordable than they have been in years: According to Moody's
Analytics, the ratio of home prices to income is now 20.9% lower
than the 15-year average through 2010, and 12.5% lower than the
1989-2004 average.
A historic glut of homes, meanwhile, has
created a BUYER'S MARKET: There were about 15 million vacant
homes in the U.S. last year, according to John Burns Real Estate
Consulting, Inc.—some 3.1 million more than normal.
created a BUYER'S MARKET: There were about 15 million vacant
homes in the U.S. last year, according to John Burns Real Estate
Consulting, Inc.—some 3.1 million more than normal.
"I highly recommend that all who can partner with an educated real estate Investor and watch your net worth increase over the next few years."
Larry Tutino
A special thanks to Chris McLaughlin & John Burns, Real Estate Geniuses
