The Real Estate Market in NJ
eal Estate Market in New Jersey
New Jersey’s housing market is slowly recovering with the rest of the nation. The last quarter showed some growth in the purchase of new homes. As the economy improves the New Jersey real estate market rebounds as well. The statewide housing market as well as the economy faced a turning point earlier this year and are still improving. However, this does not mean that sellers can increase their asking price for their home. Banks remain very cautious about home lending and buyers are not going to be willing to purchase if prices are inflated. This is why it is very important to enlist the services of a reputable property appraisal agency such as Regency Property Appraisal. They can offer realistic and accurate valuations of your property if you are selling your house or looking to purchase one. Abbe Edelman is highly qualified to perform property appraisals so that prices can accurately reflect the condition of the New Jersey housing market. Property owners should know their house value, especially if they want to sell; and those who are in the market for a new house should too so that they will be familiar with going rates.
Housing Forecast for New Jersey
Although the housing market nationwide usually quiets down during the winter months, it is also energized by the job market. As the economy of the state recovers, the housing market is expected to rebound slowly in response. Home prices are more affordable and mortgage rates remain low. Experts stated that the prices are back in the same ranges as they were in back in 2003. Potential buyers have waited for years now because they were unsure about their jobs, or afraid that home prices would fall even further. However, as rent prices increase many households are likely to choose purchasing a home over rentals. There is no indication that there will be a crazy market frenzy like occurred in 2005. At the present time, over 16 percent of New Jersey homeowners are running late on their mortgage payments or in foreclosure already. This can cause some complications in the improving real estate market. The problem may come in when there are a large number of foreclosures in a particular area. Even though these properties sell, they are usually sold off at a 20 to 30 percent discount. While those making the purchase can enjoy the savings, property values in the area can drop off as well.
How does New Jersey compare to the nation?
Even though the housing market in New Jersey has gained strength, it remains close to the bottom when compared to the rest of the nation. It ranked 47 out of 49 regions. There are several factors considered when measuring how healthy a state’s real estate market is. The state’s foreclosure percentage, home ownership and vacancy, unemployment rate, debt to income ratio, loan to value ratio, and percentage past due are all considered when making these types of measurements. New Jersey has a slightly higher unemployment rate than the rest of the nation and this was a major factor in the state’s low ranking. As people become more secure in their employment, more credit will become available.
Signs of Recovery
The Philadelphia Federal Reserve Bank has indicated that the economy of the state is improving faster than the rest of the nation so it is expected that the housing market will reflect this growth soon. There are some signs that the housing market has begun recovering although it is a very slow process. Right now, the housing market is still in favor of the seller since the prices are slowly creeping back up
Housing Forecast for New Jersey
Although the housing market nationwide usually quiets down during the winter months, it is also energized by the job market. As the economy of the state recovers, the housing market is expected to rebound slowly in response. Home prices are more affordable and mortgage rates remain low. Experts stated that the prices are back in the same ranges as they were in back in 2003. Potential buyers have waited for years now because they were unsure about their jobs, or afraid that home prices would fall even further. However, as rent prices increase many households are likely to choose purchasing a home over rentals. There is no indication that there will be a crazy market frenzy like occurred in 2005. At the present time, over 16 percent of New Jersey homeowners are running late on their mortgage payments or in foreclosure already. This can cause some complications in the improving real estate market. The problem may come in when there are a large number of foreclosures in a particular area. Even though these properties sell, they are usually sold off at a 20 to 30 percent discount. While those making the purchase can enjoy the savings, property values in the area can drop off as well.
How does New Jersey compare to the nation?
Even though the housing market in New Jersey has gained strength, it remains close to the bottom when compared to the rest of the nation. It ranked 47 out of 49 regions. There are several factors considered when measuring how healthy a state’s real estate market is. The state’s foreclosure percentage, home ownership and vacancy, unemployment rate, debt to income ratio, loan to value ratio, and percentage past due are all considered when making these types of measurements. New Jersey has a slightly higher unemployment rate than the rest of the nation and this was a major factor in the state’s low ranking. As people become more secure in their employment, more credit will become available.
Signs of Recovery
The Philadelphia Federal Reserve Bank has indicated that the economy of the state is improving faster than the rest of the nation so it is expected that the housing market will reflect this growth soon. There are some signs that the housing market has begun recovering although it is a very slow process. Right now, the housing market is still in favor of the seller since the prices are slowly creeping back up