First Fortune, now the Journal says it’s the “time to buy”

June 7, 2011

Fortune magazine pronounced it was “time to buy” a little over a month ago, and it appears now that it’s the first of a series of media assertions that the moment has come for housing market transactions to kick it up a notch. The Wall Street Journal’s top 10 of article link page views includes this one by Ruth Simon and Jessica Silver-Greenberg, “Is it Time to Buy a Home?” Their analysis, albeit aimed at professional business types, supports an affirmative, if cautious, answer to the question. They write, “Despite all the gloom, however, there are growing indications that it is a good time to buy. Mortgage rates, which fell to 4.55% for the week ending June 2, according to Freddie Mac, are near 50-year lows. Homes have become more affordable than they have been in years: According to Moody’s Analytics, the ratio of home prices to income is now 20.9% lower than the 15-year average through 2010, and 12.5% lower than the 1989-2004 average. A historic glut of homes, meanwhile, has created a buyer’s market.” Stay tuned for the follow-up story. Nothing like buyers to make a buyers market.

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