NOW is the Time to Buy a Home!

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Now is the perfect time to buy a home!  Inventory is still high and rates are still low.  Buying a home is the American Dream, and it’s the right time to wake up and speak with a financial specialist and a professional real estate agent, me.  I also have terrific mortgage partners, if you don’t have one.  🙂

Naysayers Agree.. Buy Now!

Here’s a great article from The KCM Crew and their blog post, entitled “Even the Naysayers are Saying to Buy Now!”  Read what they blogged below:

Rent or Own?

Business School professors Eli Beracha of East Carolina University and Ken H. Johnson of Florida International University have done extensive research on which makes more sense financially: to rent or own a home. They published, Lessons from Over 30 Years of Buy versus Rent Decisions: Is the American Dream Always Wise?  In their paper, the professors do not dispute the social benefits of homeownership:

“Home ownership is touted as the “American Dream”. It is credited with enhancing wealth, increasing civic pride, improving self-esteem, crime prevention, child development, and better educational outcomes, among other benefits. This paper does not dispute any of these claims.”

What the professors were proposing is that homeownership is not a better investment strategy than renting. The first of the two major findings was:

“After setting the holding period to the average American’s tenure in a residence, renting (not buying) proves to be the superior investment strategy over most of the study period… Individuals, on average, were better off in economic terms to have rented for most of the years in the study period. This first result is strongly dependent upon fiscally disciplined individuals that, without fail, reinvest any residual savings from renting.”

Historically, people do not actually reinvest savings “without fail”.  Check here for the findings of a recent study from The Joint Center for Housing Studies at Harvard.

The second major finding says it all. According to both professors Beracha and Johnson, NOW IS THE TIME TO BUY!

“(F)undamental drivers now appear to be in place that favor homeownership over renting in the near term future…

The second finding might seem unwise to many given the recent crash in the real estate markets around the country. However, rent-to-price ratios now seem to be in place along with other fundamental drivers that favor ownership over renting.”

They conclude their research paper with this sentence:

“Conditions (historically low mortgage rates and relatively low rent-to-price ratios) now seem in place to favor future purchases.”

Bottom Line

Two researchers set out to prove that homeownership is not a good financial decision. After completing that research, they have determined that now is the time to buy. What more needs to be said?


About Kecia Thurman Bland

Kecia Bland is a professional full-time licensed NC Real Estate Broker (since 2008) focused on providing excellent customer service and expertise for those interested in buying and selling real estate in the Greater Raleighs areas- the Triangle area, and surrounding counties- Wake, Durham, Johnston, Chatham, Franklin, and Granville. Kecia provides her clients with a pleasurable and smart real estate experience. View all posts by Kecia Thurman Bland

3 responses to “NOW is the Time to Buy a Home!

  • Raleigh Mortgage Guy

    Kecia – I couldn’t agree more! According to a recent Case-Schiller report, the housing market in Raleigh North Carolina for example, hasn’t been this affordable since 2004! That report takes the six month average price of homes, measures it against the median wages and cost of borrowing to determine how affordable it is.

    Think of it this way; if I told you that I was going to allow you to take a trip in my time machine back to the year 2004 and would let you buy all the gold you could afford at 385 per ounce and bring it with you back to the present where it is now selling at nearly $1,500 per ounce, well it would be a real “no-brainer” wouldn’t it?

    The same is true of homes, they are a tangible investment that although tight now appears to be an abundance of (which is why they are so affordable) but once inflation begins to really impact prices, well we are going to see the prices of homes in Raleigh for example jump anywhere from 10 – 20% in a very short period of time. I don’t know about you but I really like those returns!

  • Kecia Thurman Bland

    I love those returns! I really want prospective clients and the general public to know that now really is the time to buy. Home prices are very affordable and your comment really made mention to that also. You hit on some very great points.

    I also want buyers to realize that homes are priced well now too. They shouldn’t try and give low ball offers. I’m hearing of some people wanting to still low ball. If agents really research well and educate their buyers, homes will sell at fair market value. Sellers, on the other hand, need to be educated as well and trust their agent’s professional research.

    If the seller has any perception of a loss of their net, they need to also be aware of the very likely gain on their buying end when they do buy.

    Great feedback! Thanks so much.

    • Kecia Thurman Bland

      I also wanted to add to this comment the fact that each real estate transaction is so very unique and there are so many factors that contribute to the valuation of a home. Most importantly, now is truly the time to buy.

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