“U.S. house prices have plunged by nearly one-third in five years and the nation’s homeownership rate is falling at the fastest pace since the Great Depression.
Two key measures now suggest it’s an excellent time to buy a house as a long-term residence or an income property (but not for a quick flip). First, the nation’s ratio of house prices to yearly rents is nearly restored to its pre-bubble average, suggesting the financial advantages of homeownership once again await buyers. Second, when ultra-low mortgage rates are taken into consideration, houses are the most affordable they’ve been in four decades of data.”