Looking to Buy? Now Might Be the Time
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. — “Why It’s Time To Buy,” The Wall Street Journal, June 4, 2011.
NEW YORK — To buy or not to buy.
That is the often the question, perhaps more so in a market characterized by soft demand and oversupply.
One figure stands out in the April 2011 price index accompanying the Wall Street Journal article cited above:
While overall home prices fell 7.5 percent in April from a year ago, just five states (and the District of Columbia) actually saw prices marginal gains up to 4.5 percent: Alaska, New York, North Dakota, Vermont and Mississippi.
As always, if you or someone you know is thinking of buying, selling or renting in New York City, please let me know.