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Boston Moves Further Into Buying Territory Over Renting

The latest national index is further proof that the U.S. housing market is moving further into buying territory. Based on numbers from the end of the first quarter and the recent study that home prices nationally increased 5.4%, the housing market seems to be relatively sound.

The reasons for this boom are numerous – a steady and strengthening job market, rising rents in contrast with ownership costs and slower growth in traditional financial portfolios consisting of stocks and bonds.

The Beracha, Hardin & Johnson Buy vs. Rent (BH&J) Index measures the relationship between purchasing property and investing in a portfolio of stocks and bonds. It looks the entire housing market in the United States and isolates the markets of 23 major cities. In terms of wealth creation, the U.S. housing market has swung drastically in favor of homeownership over renting. 16 of the 23 metro markets investigated moved in this way.

Boston itself now sits solidly in buying territory.  This movement suggest that most of the consumers in the market have learned from the real estate crash and understand that residential property prices can get too high. Strong economic support makes for a softer landing for property price growth, increased marketing time for properties and lower probabilities that sellers will transact and close during a given marketing effort of their property.

Are you ready to a buy a home? Take a look at our latest listings or reach out today.