The Return of the Real Estate Market in St Augustine by Sharon Stevens, St Augustine Exclusive Buyers Agent

 

Those of us who think we can participate in a housing market recovery sooner rather than later just got welcome support from some industry experts. As reported by Fortune on CNNMoney.com, "After four years of plunging home prices, the most attractive asset class in America is housing." Research firm Metrostudy, which tracks new-home inventories for 65% of the U.S. market, reports that the steep drop in construction over the last few years has reversed the supply glut, with starts now well below closings. The firm believes the low inventory should eventually lead to higher prices.st augustine real estate market

The Fortune posting also cited a new study from a major bank that found homeowners now pay only 9.8% of their income in after-tax mortgage, tax and insurance payments, down from 17.2% at the 2007 peak. This means it's now cheaper to pay a mortgage and the other major homeowner costs than it is to rent the same house in 28 out of 54 major markets.

Fortune further reports that where existing home inventories average close to seven months, a modest boost in demand will result in solid gains in home prices and new construction. This could happen quickly in markets now showing good job growth. Moody's Analytics forecasts prices going up three to four points faster than inflation over the next few years in virtually all such markets. They see home prices rising with rents, with apartments in short supply. Of course, the housing recovery still requires job creation and consumer confidence back to normal, but we finally seem headed in that direction.

READ FULL ARTICLE AT

http://finance.fortune.cnn.com/2011/03/28/real-estate-its-time-to-buy-again/

for buyers only realty of st augustine

The Sharon Stevens Team
FOR BUYERS ONLY REALTY
St Augustine's ONLY Exclusive Buyers Agents*
We Only Work For Buyers.....Never Sellers!

Office       904-687-0542        
Toll-Free   866-573-8612
Cell          904-687-5220          
 
*Member of NAEBA (National Association of Buyers Agents)
 

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