Unlike 2007 when many real estate experts were talking about a real estate market correction and time to buy, now it might actually be true. After a 4 year decline in real estate values of as much as 50%, the cycle of real estate downturn is coming to an end.
The real estate market down cycle usually lasts 4 to 5 years following a market peak. The market peaked between the end of 2006 and beginning of 2007. The time to buy sometimes is triggered when it is cheaper to own that to rent.
Housing is Cheaper to Own vs. Rent in 12 U.S. Metro AreasA Wall Street Journal article points out, the discrepancy between buying and renting can be extreme in some areas:
With the average price of a home $242,300 — it is now cheaper to own than rent in 12 metro areas including Atlanta, Chicago, Detroit, Las Vegas, Miami, Orlando and Phoenix according to the article. See the full commentary on Yahoo Finance by clicking on the following weblink:
This is also true here in Vero Beach, where the house prices in some cases have been reduced by 45% to 50% from their peak in late 2006. Take a look at some great buying opportunities here in Vero Beach.