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On a day like today while after all of that look at these markets they would actually got some good news for many view.
Applications for mortgages jumped last week breaking seven straight weeks of declines.
But the reason may surprise you according to real -- web site Trulia it is not cheaper to buy a home.
Then rent in 98 of America's 100 largest metro areas let's get real estate realities get -- -- he is truly yes.
Big surprise -- -- for many of our viewers jet that it is cheaper to buy than to rent does this signal to you the real estate market has finally turned the corner.
-- -- -- we've seen so many years of price declines in at the same time -- tightening.
But it -- now almost everywhere it's cheaper to buy them for rent and we're also seeing signs from other parts of the housing market sales are up construction is -- -- even delinquencies and foreclosures are now coming down so we're clearly past the worst point of the housing bubble and search activity is -- people are attracted.
By these relatively low prices to -- especially in places her bond is cheap relative to renting.
Well you know Jenna has so many of my friends are relative -- told me it's always a regional story you can never look at the real estate market as a national story so let's look at some of the cities here top five cities.
Up pretty much that the majority are highly Michigan number five has -- -- Number four is Roy and Troy Farmington Hills of the Michigan area number three is Dayton Ohio again to Stoke City number one Detroit again in Michigan what I'm telling -- So the places where it's cheapest to buy relative to -- -- aren't necessarily the places for prices fell most after the housing bubble -- remember.
Prices fell almost after the bubble.
In a lot of Florida areas in Phoenix and Las Vegas but the places where it's cheapest to buy today relative to renting.
Are places that have had slower economic growth over the long term.
And places where it's relatively easy to build new housing if demand might rise.
Of course people are willing to spend more on a home if they expect values to rise in the future.
These -- the places where it's cheapest to buy relative to -- are the places where people tend to expect less price appreciation in the future.
-- other extreme places.
What I like that because when minorities stopping there really quick because -- at a good point as far as large large metro areas like a New York like a Boston.
Potentially in the San Francisco -- you don't expect a lot of price appreciation but what about in some of the markets that have been.
Hardest hat again Michigan Ohio Arizona parts of Florida parts of California in particular in the northern area.
Out -- the side of the Bay Area what about those areas do you think that those that are buying right now are going to get that price appreciation.
So some of those areas especially Florida and Arizona -- actually seen an increase in search activity.
And stronger demand for housing remember the underlying demographic trends are still with us baby boomers are looking toward retirement.
And now it's more affordable to retire to Florida Arizona than it was five years ago many New Yorkers who thought they were not going to be able to afford to retire to Florida.
I can't magistrate and we'll -- upside at -- it -- what are they pay cash though.
What is somebody that has been that the portfolios down there are in the stages of going into retirement what they pay cash for this property that would maybe explain to me.
Why you've seen seven straight weeks of declines in mortgage -- because those buyers the same ones talking about the retirees are paying cash for these homes is that.
Yes some might but they're not the only players in -- in the market of course are lots of people who.
Especially younger adults who have either been doubling up living with parents or been renting.
Who will start looking at becoming first time home buyers now that that economy is strengthening and prices are relatively Sochi.
Mortgage rates you worried are not yet.
So mortgage rates -- -- is mostly a sign that the economy is doing better of course it makes it more expensive to own a home.
But that's -- -- bigger effect on refinancing than on.
First time mortgage purchase applications that's because so many other factors in addition to mortgage rates play into the decision whether to buy or -- Jerry ads -- -- season is gonna be so fascinating to watch dead coal co chief economist for truly.
Very extended -- coming from the.
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