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Is 2012 A Good Year To Buy A House

15 2012 IS A GOOD YEAR TO BUY A HOUSE? Four reasons to buy. 1. You're ready to commit to a 2. You're ready to make a certain area and call it home financial investment 100 4. Market is favorable for buyers, otherwise known as a Buyer's Market 3. Housing prices have dropped to an affordable level Is it a buyer's market? Average price of a home PRICE-RENT RATIO = Average annual rent In a buyer's market the PRICE OF A HOME PRICE-RENT RATIO OF [20] AVERAGE ANNUAL AVERAGE COST OF A RENT IN THE US: HOME IN THE US: $10,601 $300,638 $9,496 $200,244 2006 2011 2006 2011 In 2006, the average home in the US was 32 times the average rent. It was clearly a renter's market. Today's housing climate is better for buyers. The average home in the US in 2011 was approximately 19 times the average annual rent. The decision to buy or rent also depends on your lifestyle and long-term goals. BUYING RENTING PROS PROS » Earn equity » No long-term commitment » Not responsible for upkeep » Customize your home without answering to a landlord » Doesn't require a loan or mortgage (Although it does require a security deposit) CONS » Responsible for maintenance CONS » Usually requires a loan » At the mercy of landlord for repairs » Subject to landlord's restrictions and taste for internal/external decoration. » No equity in the property Interest rates dropped to an all-time low in 2011. Low interest rates tend to stimulate home buying and usually signal economic rebounds. Despite quick fluctuations in the housing market, property values historically tend to increase around 5 percent a year. Over the past 20 years, average annual rent in the US has increased by roughly 80%. In the same period of time, interest rates for 30 year fixed-rate mortgages have decreased by 50%. AVERAGE ANNUAL RENT vs. 30 YEAR FRM $12,000 • 10% •9 % $10,000 •7 % $8,000 •6 % $6,000 • 5 % •4% $4,000 •3 % •2 % $2,000 •1% $0 AVERAGE ANNUAL RENT 30 YEAR FRM The general housing climate is much friendlier than a few years ago, but still fluctuates greatly depending on your specific location. NEW YORK CITY SACRAMENTO SAN JOSE KANSAS CITY INLAND EMPIRE CHARLOTTE RALEIGH MEMPHIS SAN DIEGO X PHOENIX FORT WORTH * BUYER'S MARKETS IN 2011 * RENTER's MARKETS IN 2011 Average price of a home in 201l was 30% below what it was at its peak in 2007. Average prices have dropped up to 50% in Phoenix, the Inland Empire, and much of Southern California. Verdict: YES 2011 saw a resurgence in buyer's markets across the country. Housing markets will fluctuate from year-to-year, but owning property remains a wise investment over time. by SheaHomes SOURCES HTTP://www.NYTIMES.COM/2011/05/11/BUSINESS/ECONOMY/1ILEONHARDT.HTML Caring since 1881 HTTP://www.LINCOLNINST.EDU/RESOURCES/ HTTP://EXPLORE.TRULIA.COM/DATAVIS/RENTVSBUY/Q2-201/ HTTP://www.CHPCNY.ORG/PUBS/WHITHER%20HOME%20VALUES%20-%20FREDDIE%20MAC-%2012-14-2005.PDF HTTP://www.FHEA.GOV/WEBFILES/22802/3Q2011HPL.PDE HTTP://www.HSH.COM/MTGHST.HTML HTTP://www.LINCOLNINST.EDU/SUBCENTERS/LAND-VALUES/RENT-PRICE-RATIO.ASP HTTP://www.JPARSONS.NET/HOUSINGBUBBLE/PHOENIX.HTML HTTP://www.DOCTORHOUSINGBUBBLE.COM/SOUTHERN-CALIFORNIA-HOME-SALES-COLLAPSE-BY-21-PERCENT-YEAR-OVER-YEAR-REAL -ESTATE-TANKS-SIMULTANEOUSLY-WITH-ENDING-OF-GOVERNMENT-ARTIFICIAL-MARKET-INTERVENTION/ HTTP://REALESTATECOMMUNITIES.COM/ HTTP://www.LINCOLNINST.EDU/SUBCENTERS/LAND-VALUES/RENT-PRICE-RATIO.ASP 166T 1993- 1995 - - L661 666T T007 2003 2005 Looz 6007 2011-

Is 2012 A Good Year To Buy A House

shared by sheahomes on Apr 18
Today’s housing climate is better for home buyers. The average price of homes for sale in the US is currently around 19 times the average annual rent. The general housing climate is much friendlier ...


Shea Homes


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