Why Buy a Home?
Saturday February 4, 2012
Realty Times for Real Estate News & Advice
You’ve probably heard it all over media outlets. “Affordability is at an all-time high.” “Interest rates are below 4.0 percent!” The question remains, however, why buy a home? What do these proclamations actually mean for you?
Let’s look at these claims. Affordability is at an all-time high. This is calculated by a ratio of median household income to median home prices for any given area.
According to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) this record level is around 73 percent of all new and existing homes. To put this number into perspective, before recent years’ developments it was rare to see the HOI go above 60 percent. Read more…