In an effort to share valuable customer facing information, please see the brief article below: Seems to me this could be a powerful piece of information to share with clients who may be on the fence.As a matter of fact, another Bear economist turned bull this last week! Chris Thornburg, a former UCLA economist and founding principle of The Bacon Group was quoted saying:
"...a great time to buy a home... buy now."
John R. Talbott, previously a Goldman Sachs investment banker, is a bestselling author and economic consultant. When it comes to the housing market he is also a prophet. When housing prices started to skyrocket in 2003, he published The Coming Crash in the Housing Market correctly warning us that a real estate bubble was forming. Then in January 2006, he called the absolute peak of home prices in the US by releasing a new book, Sell Now! The End of the Housing Bubble.
Mr. Talbott, the person who accurately predicted the housing bubble and its bust, now has a new prediction - IT IS THE TIME TO BUY A HOME! In a recent article, Homes - Buy Now!, Talbott simply explains:
"I have been waiting for more than five years to offer this advice. It is now time in most cities across the country to buy a new home or refinance your existing home with thirty-year fixed rate mortgage debt."
He goes on to explain that his conclusion is based on four different metrics, all of which favor buying today:
Home Prices Relative to Peak Prices During the Bubble
Home Prices Relative to Construction Costs or Replacement Costs
Home Prices Relative to Incomes and Rents
Home Prices in Real Terms, Not US Dollar Terms
If the person who called the real estate bubble and its bust says now is the time to buy, we believe it is time to buy.
Article passed to me by:
Michael MacDonald has forwarded this email to you with the following message: Great article to motivate any buyers that are "on the fence." Happy to help in EVERY way possible ! - Mike First Option Mortgage Off: 314-400-9815 Cell: 314-249-8149