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2009 - It Just Could Be Once in a Lifetime Opportunity for Real Estate Buyers in New Jersey.
All variables are finally aligning harmoniously to likely create once in a lifetime opportunity for real estate buyers in New Jersey. Those are the facts, plain and simple and they might surprise you. Educate yourself to be able to make an informed decision.
New Jersey Higher Appreciation
The seven year appreciation rate (2001-2008) for New Jersey homeowners is 80.4 percent, more than double the national rate of 37.8 percent.
A home isn't just a great place to raise a family, it's the key to building long-term wealth.
Source: 2008 Profile of New Jersey Home Buyers and Sellers
Mortgage Availability
Through the American Recovery and Reinvestment Act of 2009, loan limits on mortgages secured by Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA) have been increased in New Jersey with a maximum current loan limit of $729,750. More New Jersey mortgage information.
Source: US. Department of Housing and Urban Development
Down Payment and Other Programs
Various down payment programs are available to buyers with specific ones for New Jersey and Middlesex County buyers such as the Smart Start and American Dream Down Payment programs.
$8,000.00 Tax Credit
Available for buyers who did not own a home in the last 3 years. This credit do not have to be repaid but you may qualify only if you are buying a property before 01 December 2009.
Source: United States Department of the Treasury
Mortgage Rates are at 40 Years Historic lows
Giving you the highest buying power or the lowest monthly payment.
If this variable alone is not a lifetime opportunity, then what is it?
Source: Freddie Mac
Housing Affordability Index (HAI) is the Highest in 31 Years
The HAI measure the relationship between mostly median family income, home prices and mortgage affordability. Beginning 2009 it has jumped to an all time high of 173. To interpret this index, a value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home.
Source: National Association of Realtors
High Home Inventory
There is still plenty of inventory. This provides you with a greater chance to find you “perfect home” because of the many choices within your criteria.
We are Currently in the Lowest Part of the Real Estate Market Cycle
The chart below will give you a good visual of where we stand. Currently we are between despondency and depression. This is the stage for MAXIMUM OPORTUNITY and MINIMUM RISK.
Source: National Association of Realtors and Westcourt Funds
So go ahead, do more research on your own and come to understand that 2009 is likely to represent once in a lifetime opportunity. Remember, like every strong opportunity, it won't last…
I am sure everyone around you as an opinion in regard of the local real estate market and either or not it is a good time for you to buy. Don’t be paralyzed by letting your emotions overwhelm you. Educate yourself and make the best decision including your own circumstances based on facts and logic, not emotions or your neighbor’s opinions.
Let me know if you have any questions; I can lead you all the way to home ownership at no cost* to you.
Cathy Chaudemanche
*In most cases the seller pays for my fees