Realtors Under Fire
It's nice to see the New York Times (NYSE: NYT) step up and give the National Association of Realtors, and its head optimist, David Lereah, a poke it so richly deserves. This article points out what the NAR, and homebuilders like Centex (NYSE: CTX), Beazer (NYSE: BZH), and Pulte (NYSE: PHM) or mortgage-hawkers like Washington Mutual (NYSE: WM) and Freddie Mac (NYSE: FRE) don't want you to know.
Renting makes a lot more sense than buying. In a lot of places. A lot of the time. Do the numbers yourself.
It's still a bit of New York Times naive, brimming with statements like this one: "Most striking, perhaps, is the fact that prices may not yet have fallen far enough for buying to look better than renting today..."
How is that striking? Home prices have gone through an unprecedented bubble. Rents have not. Unless housing prices tumble very quickly, it will be years before buying is smarter than renting, especially in a bizarre market like the one around Washington D.C., where a run-down, seven-square-foot, 1950s crackerbox goes for $450,000...