NYC Apartment Agent

New York real estate + beyond

Looking to Buy? Now Might Be the Time

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To buy or not to buy. That is the question.

To buy or not to buy. That is the question.

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.


4 Responses

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  1. […] interest rates are still close to historic lows … they are likely to rise in the coming year as the economy improves — a point many in real […]

  2. […] this year, The Wall Street Journal pointed out that mortgage rates at the time were approaching 50-year lows. Soft demand and oversupply have made it a good time to buy, but there is no telling how much […]

  3. […] Posts Manhattan Rents Soar to Within $1 of Record LevelsAbout MeFind Your Starter Apartment DealLooking to Buy? Now Might Be the TimeAn Amazing Transformation in BrooklynA Brooklyn Room of One's […]

  4. […] I smiled when I saw the subheading, “The moment for first-time buyers may be right now.” It was an assessment just like one I had made a few months ago. […]

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