Jeff Otteau's Market Outlook for New Jersey Real Estate

Posted by Susan Zanzonico on Monday, December 31st, 2007 at 4:12pm.

Real Estate Market

A brief synopsis of Jeff Otteau's real estate market analysis for the future. Contract sales reached the lowest level since 2005 in November coming in 18% lower than the previous month. The unsold inventory in New Jersey fell for the 3rd consecutive month reflecting 64,000 homes compared to August's 72,000. This reduced number is driven by a weak market rather than an indication of sales. Sellers are deferring their selling plans until the Spring and home builders are slowing he pace of new construction. The decline of home prices is predicted to continue into 2008. Home Sellers...this trend strongly indicates that waiting to sell your home would not be the best choice to net the maximum price. When pricing your home, Right Pricing to the current market is the best strategy for sellers.

Buying Real Estate

What does this mean for perspective buyers?? Spring of 2008 for New Jersey real estate presents lower home prices and low mortgage interest rates which is a rare and unique opportunity that has never before occurred in the housing market. Traditionally, home purchase activity has been directly linked to interest rate levels....meaning low interest rates typically increase the sales pace and prices while reducing unsold inventory. The next 6 months will offer an attractive and rare combination of lower interest rates, lower priced homes and a wide selection of homes for sale by motivated sellers. Five years from now, we're likely to reflect back and conclude that 2008 was when Smart Buyers took advantage of this unique opportunity to lock in a home at a combined low price and low interest rate. Contact me for a free market analysis on the current value of your home in Summit, Morristown, Chatham and Harding NJ or the surrounding areas.