Wall Street Journal’s Jack Hough, titled his article on Saturday just that… “It’s Time to Buy That House”.
He discusses the National Association of Realtors, Housing Affordability Index, which Town and Country has written about several times this year, which was 183.7 in August. According to NAR a reading of 100 would indicate that the median income family with a 20% down payment can afford a mortgage on a median priced home.
Jack gives an example of a median priced home in greater Phoenix, purchasing it with 20%, at todays 4.12% interest rate, results in monthly payments less than half what the rental for the same home would be.
Of course, as we discussed many times in prior blogs, the banks are being piggy and not lending the money they should, even to qualified buyers. This must be rectified first, in order to move forward!
Personally, my sentiment has always been the same. I’d rather keep my money in “East End dirt”, as I call it, rather than anywhere else on the planet!
As Kramer would say, “Buy, Buy, Buy”.