The economy stop, validity of tax credits from homebuyer, marked down the prices of homes, stubbornly high unemployment and concerns about a double-dip recession that all potential buyers leave wondering if now is the time. It's time for renters convert to buyers and existing owners grab this dream house on the cheap? Or housing will receive even more cheap?
Home prices fell by around 30% from their peak of mid-2006 on average, with some areas such as Las Vegas, buy prices plummet more than 60%.At the same time, foreclosures continued to rise in 2010 from their highs of history 2009 and have pushed prices further.(See high-end homes that won't sell).
Buyers who are eyeing condominiums and townhomes in particular may want to check out latest rent-vs-buy Trulia index, which tracks 50 of the biggest markets of the country. It offers a discrimination in cities that offer the best buying opportunities and those who still are markets of tenants.
According to the Trulia, a real estate search engine, your best markets for bargain condos are Arlington, Texas; Fresno, California. and Miami. Others in the top 10 include Table, Texas;. Phoenix. Jacksonville, Texas;.Detroit. Columbus, Ohio. El Paso, Texas.and Nashville. some of these cities are among the markets affected by phenomena boom and bust, foreclosure crisis and layoffs, says Tara Nicholle Nelson, educator of consumer on Trulia.
The company calculates the ratio of price to rent, comparing the average price quote of a condominium or townhome with average rental two bedroom apartments and condominiums on Trulia. Basically, the calculation takes the average price of condo in a market and divides by annual rents generated in a similar property.
When it comes to rent, real estate New York came in first in the list as being cheaper to rent than to own despite rents there has recently been on the rise. The Big Apple was followed by Seattle and Fort Worth. Rounding out the top 10 tenants markets is Omaha.Sacramento. Kansas City. Portland, Oregon. San Diego.San Francisco and Boston. (See photos of Americans in their homes).
Nelson says that she was particularly surprised that condominiums in Omaha, Fort Worth and Kansas City were more expensive to own than cars. It attributes this to reduce unemployment rates and wealthy families paying, which maintained condominium prices. Some cities avoided the housing bubble, she says, another reason prices have accomplished.
Still, even though the proportion of rent-vs-buy huge favors renting, potential buyers should take into account other factors such as prices fell from its peak, potential tax advantages and how long the buyer plans to live in the property, Nelson warns.For someone who is not looking to flip the property for a quick buck-those days are over, aren't they?-and plan on staying in a House for 10 years or until they are hauled to the Tomb, buy now could make financial sense even in some markets the renters, she says.
In recent months, there were signs of housing can be finally jumping at the bottom.The index Standard & Poor 's/Case-Shiller home-price composite shows prices rose, albeit modestly, for the past few months and some large creditors, as Bank of America, GMAC Mortgage and JPMorgan Chase, put foreclosures in maintains in 23 States on issues of maintenance records.All this indicates price drops may stop-at least temporarily.
But Alex Barron, founder of housing Research Center LLC, remains bearish on purchase. He expects prices to drop another 10% to 30% before the sector bottoms. inventory has increased since the expiration of the homebuyer tax credit, observes. Barron speculates that once mortgage rates begin ticking up, housing prices will probably tombo. "Correct Prices 10% for each percentage point that the mortgage rate rises, "he says.
Foreclosures are also pressing prices. Barron, notes that the Bank repossessions totaled 718.000 in first eight months of 2010, registry 584.000 23% during the same period a year ago He speculates that once is lifted the suspension of the closure of the current market, a wave of foreclosures could beat the market. added that offer is likely to cause another correction in prices of homes.
See how Americans are spending now.
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