Finally, it is time to buy a house
The Wall Street
Buying real estate is a good long-term investment for many reasons, some of
which have only become apparent in recent weeks.
Making sense of the
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- Housing prices rose sharply
in May compared with April. The S&P/Case-Shiller Index, a
closely watched real estate index, rose 2.2 percent in 20 of the nation’s
big cities. Prices rose more than 3 percent in Chicago, Atlanta, San
Francisco, and Minneapolis.
- Nationally, the increase was
the first in seven months. More importantly, the increase matched
other data and evidence this spring that foreclosures slowed and
inventories were shrinking. Economics suggests that as the supply of
distressed property slows, buyers will be forced into higher-price
- In addition, interest rates
on 30-year fixed mortgage have tumbled below 3.5 percent. For those
who can get credit, these aren’t just historically low rates; they are
one-sided deals tilted toward borrowers.
- Housing starts also rose in June, and for
those who can afford to invest in property, rents continue to rise.
Prices are at a 10-year high. Real estate website Trulia found that
it is cheaper to buy than rent in each of the nation’s 100 biggest metropolitan