New Jersey Real Estate Sales...A Drag?

The Otteau Newsletter this month is interesting.  It talks about New Jersey's declining real estate sales...not so bad.  Here is a brief synopsis....

Contract sales reached the lowest level since 2005 in November coming in 18% below the prior month's pace. New Jersey's unsold inventory fell for the 3rd consecutive month reflecting 64,000 homes compared to August's 72,000. The reduced number is not an indication of sales, but actually driven by weak market performance...sellers deferring their selling plans until the Spring and home builders slowing the pace of new construction. 

Home prices are predicted to continue to decline into 2008.  Attention Home Sellers....this strongly indicates that waiting to sell your home is not a good choice if you want to net the maximum selling price.  Given that the home prices will continue to decline, Right Pricing to the current market is the best strategy for sellers. 

Let's look at the buyer's perspective.  Spring of 2008 for New Jersey real estate presents lower home prices and low mortgage interest rates which is a rare and wonderful 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 indeed offer a rare and attractive 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 low price and a low interest rate.

Susan Zanzonico, Realtor, Keller Williams Realty....Summit NJ Real Estate

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