{"id":1942,"date":"2017-03-13T00:00:00","date_gmt":"2017-03-13T00:00:00","guid":{"rendered":"https:\/\/amazingproperty.com.ng\/blog\/housing-is-realigning-with-historic-trends\/"},"modified":"2017-03-13T00:00:00","modified_gmt":"2017-03-13T00:00:00","slug":"housing-is-realigning-with-historic-trends","status":"publish","type":"post","link":"https:\/\/amazingproperty.com.ng\/blog\/housing-is-realigning-with-historic-trends\/","title":{"rendered":"Housing Is Realigning With Historic Trends"},"content":{"rendered":"

\n<\/p>\n

<\/p>\n

Do your agents know how to answer the buy-versus-rent question from clients? Essentially, what people are asking is what\u2019s the best way to accumulate wealth, says Ken Johnson, a real estate<\/a> economist, associate dean of graduate programs, and professor at Florida Atlantic University College of Business. \u201cHistorically, housing<\/a> has won,\u201d he says.<\/p>\n

Of course, that changed with the onset of the housing bubble in the early 2000s. But brokers can breathe a sign of relief and instill market confidence in their agents and clients alike with the results of the latest Beracha, Hardin & Johnson Buy vs. Rent Index released this month. The index shows that in 15 of the 23 large metropolitan areas surveyed, it makes solid financial sense to buy, while another five cities are borderline or marginally leaning toward renting.<\/p>\n

The reason the results of the index are significant, is that it reflects a housing market that\u2019s more in line with historical trends, says Johnson, who coauthored the index. \u201cThis is great news for homeownership and the financial returns to ownership,\u201d he says.<\/p>\n

\n

Read more<\/strong>: Consumers Are Super Confident About Housing<\/span><\/p>\n<\/blockquote>\n

There are three cities on the list of concern to Johnson and co-author Eli Beracha: Dallas, Denver, and Houston. Lack of purchase affordability is causing the index to deeply favor renting in those markets. Beracha, assistant professor in the T&S Hollo School of Real Estate at Florida International University, says, \u201cThe last time we saw scores of this magnitude, housing market crashes soon followed.\u201d<\/p>\n

The index, which is based on data from the end of the fourth quarter of 2016, takes not only housing prices into account but also the cost of maintenance, property taxes, insurance<\/a>, and other expenses. The study also considers financial benefits of owning, such as the mortgage<\/a> interest deduction and property appreciation. On the flip side, the index analyzes comparable rental properties, while assuming that renters could reinvest the rent differential into a market portfolio of stocks and bonds.<\/p>\n

As a general rule, agents should encourage clients to be honest with themselves when considering the buy or rent question. Will they actually reinvest the cost saving of renting (if there is one) into the stock market? Looking beyond short-term market fluctuations, no matter how significant, Johnson says, \u201cOwnership, at its heart, is a forced savings plan.\u201d<\/p>\n

\u2014Erica Christoffer, REALTOR\u00ae Magazine<\/em><\/p>\n

Source: <\/em>Beracha, Hardin & Johnson Buy vs. Rent Index, March 2017, Florida Atlantic University and Florida International University<\/em><\/p>\n<\/div>\n

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Do your agents know how to answer the buy-versus-rent question from clients? Essentially, what people are … Housing Is Realigning With Historic Trends<\/span>Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":1943,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_seo_schema_type":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[4],"tags":[695,4751,1403,15239,12908,543,627,344,698,408,1007,41,818,84,678,645,1262],"class_list":["post-1942","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opportunities-in-new-markets","tag-agent","tag-amazing","tag-buy","tag-chase","tag-home","tag-home-buying-guide","tag-homeowners","tag-housing","tag-insurance","tag-mortgage","tag-owners","tag-property","tag-real","tag-real-estate","tag-rental","tag-renting","tag-taxes"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":6425,"url":"https:\/\/amazingproperty.com.ng\/blog\/buy-vs-rent-index-still-leans-toward-buy\/","url_meta":{"origin":1942,"position":0},"title":"Buy vs. Rent Index Still Leans Toward Buy","author":"Amazing Property","date":"September 26, 2017","format":false,"excerpt":"Which is better for your clients: accumulating wealth through home equity or renting and investing their savings? That\u2019s the fundamental question that the quarterly\u00a0Beracha, Hardin & Johnson Buy vs. Rent (BH&J) Index aims to answer. After examining 23 of the country\u2019s largest metro areas in the second quarter, home buying\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"united-states.jpg","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/09\/united-states.jpg?fit=578%2C370&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/09\/united-states.jpg?fit=578%2C370&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/09\/united-states.jpg?fit=578%2C370&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":1767,"url":"https:\/\/amazingproperty.com.ng\/blog\/buy-vs-rent-index-says-buy\/","url_meta":{"origin":1942,"position":1},"title":"Buy vs. Rent Index Says \u2018Buy\u2019","author":"Amazing Property","date":"March 10, 2017","format":false,"excerpt":"The escalating costs of renting are making it a better time to purchase a home in most cities across the country, according to the Florida Atlantic University and Florida International University\u2019s Buy vs. Rent Index.\u00a0 Read more: Consumers Will Compromise to Buy Homes \"This is great news for homeownership and\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5327,"url":"https:\/\/amazingproperty.com.ng\/blog\/group-targets-four-states-in-new-housing-index\/","url_meta":{"origin":1942,"position":2},"title":"Group targets four states in new housing index","author":"Amazing Property","date":"July 17, 2017","format":false,"excerpt":"Founder, Roland Igbinoba House Price Index (RI Index), Roland Igbinoba said the group plans to increase the coverage of the house price index on a quarterly basis until it fully covers all major cities that will enable investors adequately track house prices. 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