NPR Report: Crisis In The Housing Market??

The following NPR story aired this morning on Morning Edition. The piece takes a look at the state of the housing market, including a really good look at the current value of owning verses renting.

In the Washington, DC metro area rental rates are on the rise, with a more than 7% rise in 2010 (according to Bloomberg). A recent report locally (source escapes me) showed that areas like Reston have seen closer to a 13% rise in rental prices.

What I want to emphasize ahead of this clip from NPR is that in some cases renting may still be cheaper than buying, right now anyway. But in the mid to long term rental prices are going to continue to rise, especially in more dense urban areas, ie, inside the beltway and into DC. Knowing this, and seeing that prices are bouncing along the bottom and interest rates keep breaking record lows, buyers have the chance to lock in a mortgage at what will eventually prove to have been a historical “best time” to buy. For those who are able to do so, they will have their payment stay the same while they watch their renting counterparts pay more and more every year, alongside a housing market that will eventually become less and less favorable.

Now, I am not a scare tactic guy, these are just realities of the market. A far more important reality is whether someone is actually in the position to buy or not. Only you and a qualified financial expert can answer that question. As good a time to buy as right now may be, it’s only good if you are in a place financially to jump in.

NPR: For Many It’s Still A Good Time To Buy A Home:

Want To See If You Should Stop Renting? Find Something You Like and Let’s Look at The Numbers:

Related Posts: