Nick Timiraos is a columnist at the Wall Street Journal and he just wrote an article on the affordability of housing. The article which was published in the Wall Street Journal on November 26, 2011. Here is a link:
In the article, Mr. Timiraous points out the reason many buyers are looking to get back into the market:
Home prices and mortgage rates have fallen so far that the monthly cost of owning a home is more affordable than at any point in the past 15 years and is less expensive than renting in a growing number of cities…
Meanwhile, rent levels have risen briskly across the country and mortgage rates, hovering around 4%, are the lowest in six decades. As a result, monthly mortgage payments on the median priced home—including taxes and insurance—are lower than the average rent levels in 12 metro areas, according to data compiled for The Wall Street Journal by Marcus & Millichap, a real-estate brokerage that tracked 27 metro areas.
Since there is no mention of the detuctability of mortgage interest and property taxes, the buying side of the equation appears to be more attractive than has been presented. Income tax savings can be substantial for many home buyers.
The article is very interesting and just one of many which are now changing the tone of the Buying Vs. Renting debate.
Scot Campbell is the President of The Scot Campbell TEAM at Coldwell Banker-Campbell Realtors in Huntington Beach, CA. He has been a licensed broker for over 21 years and has brokered over 1000 homes and just about every type of transaction imaginable. On his website you can search for homes and obtain an instant home value report: www.RealtyDigestOnline.com He can be reached at 714-960-0700 at the office, 714-336-0394 on his mobile number or via email at Scot.Campbell@ColdwellBanker.com