January 08, 2019
Naturally, home prices are a top priority topic for anyone buying or selling a home. Although the recent Fed interest rate hike didn’t immediately push mortgage interest higher, those rates are expected to trend upward in the coming months.
Recent conversations with those wanting to purchase a home reveal some concerns. You might be asking some of these same questions:
- Can I afford to buy a home this year?
- What do I need to save toward a down payment?
- Will rising sale prices affect property taxes?
Those are all excellent questions and hopefully the answers will help put your mind at ease whether you are buying or selling property in the northern New Jersey area.
Our 2019 forecast is a mix of fabulous and not so fabulous news. Home prices have risen year over year by an average of 5% in most areas. That will influence more people to put their home on the market for sale. That is very good news as so many who wanted to purchase a home have been frustrated by extremely low inventory to choose from and stiff competition for the homes that are available.
While the not so fabulous news is that sale prices are expected to continue rising, even that isn’t such bad news, since the increases are slowing so most buyers will not find affordability a real issue. However, property tax assessment increases do eventually follow those price increases. Something to keep in mind as you budget for your future.
Down payment options with most lenders remain flexible, allowing buyers to put that saving to good use in other areas. New furniture, appliances or perhaps a few renovations in their new home. Real Estate trend surveys indicate that a majority of today’s purchasers have a preference for walls over the once popular open concept. That extra cash in the budget may mean rebuilding walls that were removed when you find that perfect home, located in the perfect neighborhood that just lacked that one thing, whether walls or some other feature.
Weighing all the pros and cons of home ownership is absolutely essential to making the best decision. Based on your personal preferences, financial and employment outlook and the current market conditions in the community where you want to live, that dream home can really happen this year. As your local marketing specialist I’ll help you tip those scales in your favor!