There have been so many horror stories related to the real estate market that one cannot be blamed for being too scared to jump into purchasing a house. Even news headlines are supporting the fear of being in the real estate market. However, analysts are starting to point out that real estate deals these days are just too good to resist – and some Americans are starting to realize that[1].

In the past two years, housing experts have never been able to agree as whether the combination of record-low mortgage rates and low home prices has made home buying worth the perceived risk in today’s market. Mortgage-insurance and research firm PMI Group Inc. chief economist David Berson pointed out that the U.S. median home price during the market boom was 7.3 times disposable per capita income but ratio is currently only at 5.

A warning, though, to those who are now gaining confidence to jump the gun: lowering of prices does not mean further decline is not about to happen. Home ownership is no longer about investing solely for appreciation, but also in the experience and benefits of owning a home versus renting one. Experts explain that there are just some cities that have better price outlook. PMI’s risk index reveals that metro areas – 381 of them – have 30% less chances of seeing a drop in prices in the next two years. If you are to purchase a home, those in the Midwest or South will be the best option.

[1]http://realestate.msn.com/article.aspx?cp-documentid=26646856>1=35006