While a recent real estate industry report indicated that home prices will continue to decline 1% per month, the good news is that January sales in the area increased 9% from the December level. That same report predicts that prices will begin to level off during the 2nd half of 2009. That’s why the savvy buyer should be out there looking at the opportunities now.
While it feels like a scary time to do anything that involves spending money, the reality is that with the mortgage rates so low (the average 30 year fixed rate loan is now at about 5.04%) and home prices now back to affordable levels, the time to buy is in fact now. Real estate remains the best investment.
Here is some national data that may interest you… (statistics according to the National Association of Realtors):
1970-1979 – real estate appreciated 142%
1980-1989 – 52% appreciation
1990-1999 – 45% appreciation
2000-2008 – 42% appreciation
Like every investment, there are ups and downs. Even if you buy now and it is not the exact bottom of where the prices will fall this year, the resulting appreciation in the years to come will clearly compensate. Where else can you earn these percentages on money that is primarily not yours AND get a tax deduction besides? Don’t miss this opportunity.
Homes under contract during the past month (since February 1, 2009):
South Orange 10
West Orange 15
We are now at the beginning of the 2009 Spring market. There are many lovely and wonderfully priced homes coming on the market each week in all price points.
We would be happy to send you some listings if you are considering a move up, down or sideways! If you have questions about your particular situation, please feel free to contact us for a confidential assessment of what a move would look like for you financially.