The article discusses that it is now more affordable to own house rather than to rent one. However, although monthly mortgage payments are below monthly rental payments, would-be buyers are not pulling the trigger on buying a house. Homeowners, who would like to move to a better, bigger property, are unable to sell their house. In addition, fallen home prices and mortgage rates did not out weigh the other costs such as taxes, insurance, and homeowner association dues and would-be buyers' wary of future decline in home price, suggesting that buying a house is not a good financial investment. If this is so, with household not readily willing to purchase a house could lead to a delay in purchases of durable goods such as cars or home appliances. So when will we begin to see households taking advantage of such affordability?
For more information:
http://online.wsj.com/article/SB10001424052970203764804577060502694077494.html?mod=WSJ_hp_LEFTWhatsNewsCollection
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