Buy Now before its ......too late!! Read this article posted January 24th 2013
With fierce competition in almost every sector of the residential real estate market of Northern NJ, some investors wonder how much longer this can last. Economists are predicting strong growth for 2-4 years. In addition to sales volume, construction, prices, GDP as a result, and demand is going to continue to improve at healthy rates. All of this is good news for the economic recovery.
Even though there are roughly 3 million homes in foreclosure across the country, in areas like Northern NJ, banks will hold onto those homes until they get an offer for retail pricing. They’ve already been doing that and getting top dollar or whatever the market is trading at. Don’t fool yourself into thinking a foreclosure can be bought at a fraction of the actual value. If you are looking for good value in foreclosure, look for the homes that need work. We are finding some great properties in need of repair that most primary homeowners can’t touch because they simply can’t afford the down payment and then the cost of repairs.
Here are some bullet points as to what expect in the next 2-4 years:
Shadow inventory is also getting lower, however NJ still has one of the highest amounts of Shadow inventory in the country. Shadow inventory takes all REO and delinquent mortgages into account. Due to investor demand, these homes will continue to be absorbed and activity is going to remain strong in the region.
New permits are on the rise and I expect Q2 of 2013 is expected to increase 20% from permits pulled a year earlier.
What are your thoughts on the housing market?
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