October 09, 2019
Interest in buying a home never seems to fade too much but despite having a desire to become homeowners, prospective buyers need to take into consideration their financial situation, the economy, real estate market conditions and more. In fact, many factors influence the ability to purchase even when a decision to buy is made. This year, mortgage rates may be playing the most significant role. At the beginning of the year, rates were increasing and the effect it had on affordability meant some otherwise interested home buyers decided to wait. But now, after rates have been on the decline throughout the spring and summer markets, home buyers are returning to the market. Increasingly, it is becoming clear that now is a very good time to explore the Essex County NJ marketplace.
With that in mind, you might find yourself wondering about whether or not renting really costs less or does it cost you more in the long run than owning a home? If you take the short view – the idea that renting is cheaper because there are no upfront expenses like a down payment or closing costs – you might miss out on the long-term financial benefits which, according to recent studies, includes not only wealth creation, but a heightened sense of overall well-being in personal health and happiness.
Another excellent reason for taking the long view on home ownership is the monthly expenditure. According to the most current surveys it was found that 34% of renters spend more than 1/3 of their income on rent. The same study showed that homeowners only spend 25% of their monthly income on a mortgage. The return on investment is that, unlike their renting counterparts, owners are also building equity each month.
Housing market conditions are largely location based, meaning that what’s true in one neighborhood might not be true in another. One way of gauging the housing market is by following average home price statistics and mortgage interest rates, buyer traffic and sales, as well as inventory levels at different price points.
As a potential home buyer or seller there may be no better indicator of the overall health of the real estate market in any given area, than to look closely at the activity of new home construction. Unlike other aspects of the industry, new home construction won’t only fail to thrive, it will fail to survive at all if builders aren’t acutely aware and specifically tailoring their activities to the demand for product. Otherwise, they could end up saturating the marketplace and diluting demand and value for their product. This is why construction is consistently a large factor in recognizing the trending cycles in our real estate market. The in-depth insight necessary to decode these cycles can be found in the expertise of your local real estate specialist.
To search all new and available listings for sale, or find out the value of your current home, visit http://njrealestatehomesearch.com.