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Foreclosures, Mortgage Rate Cuts, and 2009 New Jersey Home Sales
By admin | December 23, 2008
Just watching CNBC talking about the latest housing numbers nationally. The talking heads were in a argument about if this is a good time to buy a home.
Foreclosures, Mortgage Rate Cuts, and 2009 New Jersey Home Sales
So what was their conclusion? Markets where foreclosures have been a problem will continue to see price declines, markets where foreclosures have not been a big problem will see a flattening out of home prices. Thankfully New Jersey falls into the category of home foreclosures not having been a big problem.
The Northern New Jersey Real Estate Market
There has been a lot of worry locally about what was likly to happen with the local real estate markets considering all the possible job losses connected to the NYC financial industry. That is a valid concern, and some of the towns have more exposure than others. Of the New Jersey towns that I sell real estate in the towns that seem to have more risk included Summit NJ, Millburn NJ, Maplewood NJ, and Chatham NJ, though it is really hard to say that they will get hurt as many of the people who lose jobs will likly land on their feet.
Getting a great deal on a Morris County Home
One thing that seems sure, is that Mortgage interest rates are not likly to get much cheaper than they are now. There are several major home mortgage companies advertising 4.75% thirty year fixed rate mortgages for home purchases. It is possible that mortgage interest rates could fall to 4.5% or even 4.25% but even those numbers are considered to be a long shot. You may be saying to yourself, I will just wait and see if interest rates fall that low, but be advised that as soon as the Federal Reserve starts getting a strong smell of inflation they are going to pull rates back up.
Home prices have fallen in the area, Many towns along the Midtown Direct (Morristown Line) train line of New Jersey transit are down between 9% and 14% over the last year. Prices do seem to be flattening out though, so looking for additional large price declines is probably a waist of time.
The best time to get a great deal on your next home? When mortgage interest rates are down, and home prices are flat after a downturn, and when most people are not thinking about buying a home. Even the CNBC talking heads are saying, if you can, now is the time to get a great deal on a home. They actually said if you are a first time home buyer 2009 is your year.
Your New Jersey Midtown Direct REALTOR
James Boyer NJ REALTOR, I am a full time, full service professional REALTOR giving my clients top of the line service. Specializing in Morristown NJ Real Estate, Madison NJ Real Estate, Chatham NJ Real Estate, Summit NJ Real Estate, and many of the surrounding towns.
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One Response to “Foreclosures, Mortgage Rate Cuts, and 2009 New Jersey Home Sales”
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January 27th, 2009 at 11:51 pm
I agree with you that it’s almost impossible to time the market. Now is a good time to get pre-approved for a loan and start shopping for a realistic seller. In these times, a home is the best hedge against inflation. Will all the trillions or dollars of stimulus, inflation is sure to catch fire. When that happens, money will come off the sidelines and could price many buyers out of the market.