Why 2011 is the Best Time to Purchase NJ Real Estate

5 reasons why buying NJ real estate is better than it has been in years

 

The housing industry had hoped interest rates would stay very low for a long time, at least until the market bounced back. Although home prices and sales are still depressed, mortgage rates are predicted to rise in the coming months. The reason for this is inflation. Whenever prices go up, long-term interest rates, such as those on 30-year mortgages, rise along with them. To date, the rate hikes have not been steep enough to discourage most potential buyers, and 5% is still low by historical standards. However, because houses are losing value and foreclosure rates are so high, 2011 is shaping up to be one of the most successful years to buy a house.

See below for reasons why you should consider purchasing NJ real estate in today’s market:

  1. Although mortgage rates are still at historic lows, they are predicted to rise in the coming months. While they are higher than they were just one year ago, these rates will not last for much longer.
  2. There are a large number of Real Estate Owned (REO) properties that make it possible to buy a sizable house at a decent price. These properties are owned by the mortgage company after not selling at a foreclosure auction.
  3. Sooner or later the economy will successfully recover and these low rates, prices and tax deductions will not last. It makes sense to buy while the market favors buyers. Although selling is always a good option, NJ real estate agents advise clients to wait just a little bit longer for the market to shoot back up again.
  4. Buying a home makes much more economic sense than renting. In the current market, home mortgage payments can sometimes be lower than rent. If you are settled into your current location, it is wise to consider purchasing if at all possible. NJ real estate agents can provide more information for you if you are unaware of the Federal Housing Administration. The Federal Housing Administration has updated programs that make buying a house at this time more secure and accessible. It is possible to buy a home for as low as 3.5% down.
  5. There is a chance that lenders will begin to loosen standards this year. Tight restrictions in the past few years because of the housing market crash in 2008 have hurt the market. The National Association of Realtors is currently lobbying lenders to loosen standards and, as the economy improves, credit will become more attainable for the average American.

 

The NJ 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 about NJ real estate call us today or click here to be connected with one of our top real estate specialists.