Are Home Prices Cheap Enough?
This is a great article and the charts included in it should help you understand it. How can this be so simple but yet so many of our brilliant economists couldn’t figure this out? This will happen again so hopefully you can outsmart the rest and reference this article again when you go to buy a home.
I found the house prices versus inflation to be the most interesting. “Yale economist Robert Shiller studied house prices from 1890 to 2004 and found they outpaced inflation by just 0.4 percentage points a year.”
So should you buy? It all depends where you live but South Florida is certainly one of them in my opinion and the gentleman who wrote this article and is still renting agrees.
“Second, some of the lines have plunged harder than others of late. For those who wish to buy in Chicago, Miami and San Francisco, there’s good news: The froth seems to have been let out of the market. Meanwhile, New Yorkers, Bostonians and Angelinos might want to wait. Of course, averages are just that. Careful shoppers can find good deals in expensive markets, while imprudent ones can overpay just about anywhere.”