Buyer Activity Up, But So Are Foreclosures…
The Real Estate market in New Jersey is a mixed bag right now. We’re seeing many positive signs in the market, indicating a leveling off in price decline. Yet, there are some signs that the worse may not be over yet.
More Buyers, Better Market
We’re continuing to see a dramatic increase in Buyer activity, which is essential for market recovery. Here are two findings from a recent survey (5/27/09) by the National Association of Realtors for the month of April, which is very encouraging:
- The number of Buyers looking for a home is up 14% from a year ago.
- First-time buyers declined to 40% of transactions from 53% in March, implying more second-time buyers are entering the traditional spring home-buying season.
This means that as First-Time Buyers are buying homes with traditional owners (not Short Sales or Foreclosures), those people are now getting into the market to purchase other homes, which is another positive indicator of overall market recovery. However, this recovery may be hindered by another factor.
The 2nd Wave of Foreclosures
The flood of Foreclosures due to sub-prime loans seems to be past us, but it looks as if another wave is coming. According to the Mortgage Bankers Association, “Not only has foreclosure activity surged, it’s become more widespread, as prime, fixed-rate mortgages now constitute 56% of mortgages in the foreclosure process” (Housingwire.com, 5/28/09). One of the primary factors in New Jersey seems to be the unemployment rate, which was last reported at 8.8% by the Dept. of Labor & Workforce Development. If unemployment remains at these levels or continues to rise, we can expect to see its impact over the next 6-12 months on the number of Foreclosures and the overall Market.
What This Means for You
If you’re thinking about buying a home, now may be the best time to make your move. More foreclosures means more selection, but more buyers means more competition for the best homes available.
For more information or to set up a consultation to see if this is the right time for you to buy a home, contact me directly at 609-865-5877 or email me at cooper@zastko.com. And now, this week's Foreclosures & Short Sales...CarteretCliffwood BeachDunellenEast BrunswickEdisonFordsMonroeNorth BrunswickOld BridgePerth AmboyPiscatawaySayrevilleSomersetSouth PlainfieldSouth RiverCondosMulti Family
