Expert: Now is a great time to buy

Many people might be reluctant to move into a new home, but one real estate analyst called today's housing market the most affordable in decades.

Daniel Kelley, lead analyst for Fidelity Management and Research Company, said that the average homebuyer has the lowest mortgage payments as a percentage of income in 30 years. Year-over-year home supplies are down, while sales have increased in the past 12 months, indicating rising demand, wrote Kelley. Additionally, he predicted that recent market volatility, created by the expiration of the federal homebuying tax credit, would be short-lived and lead to overall long-term growth.

"While the overall success of the incentives and tax breaks will be debated for years to come, there are many reasons to be optimistic about the results thus far. While costly, these programs put a floor under the market in 2009 and many key indicators turned positive, some strongly positive," he wrote.

People who are interesting in buying a new home may want to consider moving to a state with a growing economy. North Dakota and Texas are two states that are experiencing steady job growth, according to Portfolio.com.


More News