In many markets, it may be time to buy

While some contend that the new year will bring continued declines in home prices, Wall Street Journal reporter Brett Arends said he believes that now is the time to buy. “There’s always people saying things are going to get worse… I’m not predicting that things will turn around tomorrow or next week,” Arends told the Wall Street Journal. “However, the simple reality is… real estate is cheap.” By looking at data over the last four decades on house prices, mortgage rates and average earnings, Arends said, current home prices are comparatively inexpensive. It’s not all blue skies though: New York and other high-price markets still require caution, Arends said. Amir Korangy, publisher of The Real Deal, told CNBC yesterday that buyers shouldn’t feel the need to rush because home prices are unlikely to dramatically increase in the near future.