7 Reasons Why Now Is the Best Time to Buy NJ Real Estate

When to know the time is right to purchase an NJ real estate home

 

Conventional wisdom says that buying is preferable to renting. Instead of throwing money away on a home, you can invest in your future and have the sense of fulfillment that comes from owning an NJ real estate property. That is wrong, and in fact, in today’s market many long-term renters are in a much stronger financial position than many recent homebuyers, and the last thing these homeowners are feeling is contentment. But the combination of fire sale prices on homes, the drop in mortgage rates, and government assistance in the form of the first time home buyer tax credit may have you reconsidering the idea of buying your own home.

Here are several reasons why now is the best time to buy:

Homeownership and the American Dream

Owning a home is critical to financial stability and wealth building. It is a forced savings account, a place to live, and a great NJ real estate tax deduction. In general, home ownership is what every person wants as it gives you a sense of achievement and relief.

Historically Low Mortgage Rates

It is hard to imagine interest rates going much lower than they currently are, and when they start to rise again, monthly payments and total loan costs will increase sharply. Good NJ real estate agents stress this aspect, and let their clients know how much easier it is to gain a good mortgage rate if they purchase now.

Rising NJ Real Estate Prices

After declining for 30 months, home prices are trending back upward, and the time to get in the market is now. Sellers can use this information to get more money and a better deal when approached by a buyer in these market times.

Home Affordability

The median mortgage payment on the median-priced home, as a percentage of the median household income, is lower than it has been in a generation. NJ real estate agents are seeing more and more homes come onto the market that are reasonably priced and affordable. Everyone buying a home these days cannot turn away from an affordable piece of NJ real estate property. If you can afford it, buy it!

Sellers Are Motivated

This means that buyers have the upper hand. Sellers are patiently waiting eagerly to sell their home for what they know it is worth, and are fiercely competing among an excess of inventory. This often means buyers have countless home choices and negotiating power.

Financing is Available

Banks are back in the game and ready to lend to well-qualified buyers. Lenders and mortgage companies are actually encouraging buyers to buy, and want their buyers to feel comfortable with their financing.

Owning vs. Renting is Increasingly Favorable

Since 2009, the average principal and interest payment has fallen below the average rental rates, and the gap is now wider than it has been in the past 2 decades. Owning your own home can help you in the future to possibly buy another home when the time is right.

 

The real estate market is changing rapidly and expanding into new avenues almost daily. Sometimes it can be very difficult to find the answers you need on a specific topic or issue. In times like these, you need a real estate professional who will provide valuable information and trustworthy advice. For more information on NJ real estate, call us today or click here to be connected with one of our top real estate specialists.