The housing market's low property values make buying more reasonable than renting
The debate on whether it is better to buy or rent a home continues, however chief economist of Moody Analytics, Mark Zandi, states that now is the best time to buy.
"Inventories of new homes of homes for sale are at a record low," Zandi explains. "We've got data back now 25, 30 years and they've never been lower."
Housing prices have indeed dropped during the recession, and other than a slight price increase this year, the average price of a home is at its lowest since 2004. The U.S. census found that the average home in 2007 was priced at $313,600, whereas a home in 2010 was priced at $272,900. The Wall Street Journal reports that low interest has helped to make buyers' rates less than half of what they were, on average, in the last 40 years. In Houston alone, the estimated median value of a house in 2009 was $128,000, according to City-Data.com.
Some first-time buyers of Houston, TX real estate are wondering if it would be best to wait for property prices to plunge even further before buying a home. Although economy experts are unable to agree on whether the housing market has truly hit rock bottom, most recognize that any further decrease in housing prices will potentially result in increased interest rates.