Has The Maplewood and South Orange New Jersey Real Estate Market Finally Reached The Bottom?

I’m very excited to share the news I learned last week at Jeff Otteau’s Real Estate Workshop.  If you’re not familiar with Jeff, he is renowned for being the most eminent authority on New Jersey Real estate trends.  His appraisal group has been studying the New Jersey real estate market for 30 years.

According to Jeff, Maplewood/South Orange Home Sales and other areas of New Jersey stabilized this past June, which more than likely means we’ve finally hit the bottom!  It looks like we’re in a recovery market right now. If you’ve been thinking of purchasing a New Jersey Home or selling your existing Maplewood or South Orange Home and buying a bigger house, you have about a six-month window to purchase at a great price with excellent interest rates.

As we all know, the government has been falsely keeping the interest rates down – but this can only continue for so long.   By next year, rates will be up about a point.  And while “one percent” doesn’t sound like a lot, it translates to a buyer losing 10% of their purchasing power!  So the $500,000 home you can afford today will translate to only 450k affordability next year.  By 2011, we’ll probably be seeing interest rates escalate up to 7%.

Jeff predicted last week that the First Time Home Buyer Tax Credit set to expire would be extended.  Well, he was right.  The Obama Administration announced on October 29th that the credit would be extended until April 30th with an expansion to include higher-income and current home owners.  The new plan will offer a $6,500 credit to people who have lived in their current homes for at least 5 years.  Couples earning up to $225,000 and individuals up to $125,000 would qualify for the break.  That’s up from the current $75,000 for individuals and $150,000 for couples.  We’ll probably see a surge in the upcoming Spring market as more people feel confident buying and the interest rates stay down.

So, if you’re looking for a Maplewood Home or South Orange Home, do it now and with confidence!

 

 

 

 

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