House Price to Yearly Rent Ratio Points Way to Buying Homes.

By
Real Estate Broker/Owner with DMK Real Estate Ct RE Broker 0789963

House Price to Yearly Rent Ratio Points Way to Buying Homes.

October 15th, 2011 Wall Street Journal’s article “It’s Time to Buy That House” points out two key measures that are now suggesting it’s a good time to buy a house. For long term live in or for an investment the two measurements are the house price to yearly rents ratio and the current low mortgage rates.

According to Moody's Analytics, nationwide the ratio of home prices to yearly rents is 11.3, down from 18.5 at the peak of the bubble with the average from 1989 to 2003 was about 10. Even if price/rent ratios are not at their absolute low, with the 30 year mortgage rates in the low 4% that lower the total cost of the home thus making some markets looking like bargains.

To read the WSJ article click here.

To find current mortgage rates in Connecticut click here and go to mortgage page.

 

 WSJ article

 

 

David Popoff is a license Realtor in Connecticut with William Raveis office in Darien.   A life time resident of Fairfield County he has worked throughout lower Fairfield County for over 30 years and now resides in Darien, Ct since 2004. 

  • Member of the Darien, Greenwich and Greater Fairfield County MLS.
  • Member of the Connecticut Association of Realtors, CAR.
  • Member of the National Association of Realtors, NAR.
  • Green Affiliations.
    • Realtor GREEN designation by the National Association of Realtors.
    • David Popoff is an accredited LEED Accredited Professional (LEED AP) Homes and USGBC member of the Connecticut chapter (CTGBC).  
    • Associate member and an accredited Certified Green Professional (CGP) of National Association of Home Builders (NAHB) and the local chapter HBRA-Fairfield County, Ct. .
  • Contact David Popoff for all your real estate needs in Darien, Greenwich, New Canaan, Rowayton and the rest of lower Fairfield County.

 

Posted by

David Popoff
Connecticut Licensed Real Estate Broker
Realtor® Green
Seller Representative Specialist
Accredited Buyer Representative
candidate
LEED AP Homes

 

DMK Real Estate, Darien, CT.
Cell (203) 228-0646
DMKrealestate.com

 

 

 

DMK Realty, 06820 

 

 

 

 

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Re-Blogged By Re-Blogged At
Topic:
Home Buying
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Connecticut Fairfield County Norwalk
Groups:
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The Ninety-ninth Percentile

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Rainmaker
860,657
Gail Robinson
William Raveis Real Estate - Southport, CT
CRS, GRI, e-PRO Fairfield County, CT

David - That's a great article in the Wall Street Journal.  With more people competing for rental units prices  are bound to go up.  Even if it isn't cheaper to buy than to rent at least with buying you know what your monthly costs are (except for property taxes).

Oct 27, 2011 03:11 PM #1
Rainmaker
579,284
Chris Smith
Re/Max Chay Realty Inc., Brokerage - New Tecumseth, ON
South Simcoe, Caledon, King, Orangeville Real Esta

David, the news media is starting to see the numbers backing up what we have been feeling and noticing for a while.  The time is right to buy

Oct 27, 2011 03:49 PM #2
Rainmaker
746,871
David Popoff
DMK Real Estate - Darien, CT
Realtor®,SRS, Green ~ Fairfield County, Ct

Real Estate is a great hedge against inflation and should be part of everyone's long term investment plan.

Oct 28, 2011 01:39 AM #3
Rainmaker
786,938
Barbara Altieri
RealtyQuest, Fairfield and New Haven County CT Real Estate - Shelton, CT
REALTOR-Fairfield County CT Homes/Condos For Sale

David -  Good article and you are so right about real estate being a part of your long term investment plan. So many people are afraid to jump in now. However, they are not thinking long term.  Buying at these prices now combined with the low interest rates is sure to pay off in the future. 

Oct 28, 2011 02:03 AM #4
Rainmaker
488,781
The Scott Loper Team Bux-Mont Premier Properties
Keller Williams Real Estate - Montgomeryville - Lansdale, PA

Hi David,

It is surprising that more renters are not jumping on the buy wagon.  Glad the news is confirming this.  But so many renters are still hesitant. 

Lisa

Oct 28, 2011 02:58 AM #5
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Rainmaker
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David Popoff

Realtor®,SRS, Green ~ Fairfield County, Ct
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