According to the Wall Street Journal. The author repeats what was said here last week: now that Time Magazine has come out with a cover story saying you shouldn’t buy a home, the market’s just about hit bottom. Time, after all, ran a cover story urging homeownership in 205, just when the market was topping.
Apparently there are a lot of buyers who agree that it’s time to buy. Fudrucker and I were just discussing this morning that it’s time (past due, actually) to invest in a customer tracking system. And, charming and talented as we are, surely not every would-be buyer is choosing us.
From the Journal:
But it’s not enough just to be contrarian. So here are 10 reasons why it’s good to buy a home.
1. You can get a good deal. Especially if you play hardball. This is a buyer’s market. Most of the other buyers have now vanished, as the tax credits on purchases have just expired. We’re four to five years into the biggest housing bust in modern history. And prices have come down a long way– about 30% from their peak, according to Standard & Poor’s Case-Shiller Index, which tracks home prices in 20 big cities. Yes, it’s mixed. New York is only down 20%. Arizona has halved. Will prices fall further? Sure, they could. You’ll never catch the bottom. It doesn’t really matter so much in the long haul.
Where is fair value? Fund manager Jeremy Grantham at GMO, who predicted the bust with remarkable accuracy, said two years ago that home prices needed to fall another 17% to reach fair value in relation to household incomes. Case-Shiller since then: Down 18%.