U.S. Homes: Now the Best Deal in Recorded History!

Divider Image

By Dr. Steve Sjuggerud

Now is literally the best time in recorded history to buy a house in America…

Right now – today – U.S. real estate is the most affordable it’s ever been. Ever.

When I say “affordable,” I’m looking at three things: house prices, mortgage rates, and incomes.

With the Affordability Index near 200, the median family has 200% of the income necessary to buy the median home (or more specifically, to qualify for a conventional loan on the median home).

It’s easy to see where we are now…

Right now, as you know, house prices are sitting near new lows for this cycle, down by roughly one-third (depending on who’s counting). And right now, mortgage rates – after ticking above 5% earlier this year – are all the way down to 4.5% again, near all-time lows.

So it’s simple: With the worst house-price crash in American history, combined with the lowest mortgage rates in history, you can now afford more home than ever.

Meanwhile, hope is gone. Everyone thinks housing is hopeless. That is when a bear market ends and a new bull market begins.

At a conference I attended last month, some speakers spoke woefully of the large supply of houses for sale. That will take care of itself in time. Others bemoaned the certainty of higher interest rates in the future, which would hurt housing. But they shouldn’t be so certain…

Twenty years ago, Japan faced a housing bust similar to ours. Japan’s government has cut interest rates to near zero and printed money. And long-term interest rates in Japan currently sit around 1%.

Even rising interest rates won’t kill housing… In the 1970s, interest rates were rising, and house prices outperformed stock prices.

The story is simple: House prices have fallen more than ever… And mortgage rates are lower than ever. If you can buy a house now (and want one), go for it.

Now is the best time in American history to do it.

 

Reprinted from www.dailywealth.com investment newsletter Wednesday June 1, 2011.

About the author…

Dr. Steve Sjuggerud is the founder and editor of one of the largest financial  newsletters in the world, True Wealth which he began writing in 2001. Steve’s investment philosophy is simple: “You buy something of  extraordinary value at a time when nobody else wants it. And you sell it at a  time when people are willing to pay any price to get it.”

 

Recent post

Divider Image
13543 Blue Bay Cir., Fort Myers, FL

Just Listed! 13543 Blue Bay Cir., Fort Myers, FL 33913

  13543 Blue Bay Cir., Fort Myers, FL Click here to Get Directions $1,099,000 4 Beds - 3 Baths ... read more

11550 Villa Grand, Fort Myers, FL

Just Listed! 11550 Villa Grand, Fort Myers, FL 33913

  11550 Villa Grand, Fort Myers, FL Click here to Get Directions $235000 2 Beds - 2 Baths - ... read more

11510 Villa Grand, Fort Myers, FL

Just Listed! 11510 Villa Grand, Fort Myers, FL 33913

  11510 Villa Grand, Fort Myers, FL Click here to Get Directions $239900 3 Beds - 2 Baths - ... read more

1501 Senior Ct, Lehigh Acres, FL

Just Listed! 1501 Senior Ct, Lehigh Acres, FL 33971

  1501 Senior Ct, Lehigh Acres, FL Click here to Get Directions $345,000 3 Beds - 2 Baths -... read more

12839 Ivory Stone Loop, Fort Myers, FL

Just Listed! 12839 Ivory Stone Loop, Fort Myers, FL 33913

  12839 Ivory Stone Loop, Fort Myers, FL Click here to Get Directions $569,900 4 Beds - 2.5 Baths ... read more

631 25th St SW, Naples, FL

Just Listed! 631 25th St SW, Naples, FL 34117

  631 25th St SW, Naples, FL Click here to Get Directions $2598900 4 Beds - 4 Baths -... read more

11009 Mill Creek Way, Fort Myers, FL 33913

Just Listed! 11009 Mill Creek Way, Fort Myers, FL 33913

  11009 Mill Creek Way, Fort Myers, FL Click here to Get Directions $353488 2 Beds - 2 Baths ... read more

8837 Cascade Price Cir, North Fort Myers, FL 33917

Just Listed! 8837 Cascade Price Cir, North Fort Myers, FL 33917

  8837 Cascade Price Cir, North Fort Myers, FL Click here to Get Directions $425000 4 Beds - 2 Baths... read more