Rising home sales that are counterintuitive to conflicting data regarding the decrease in mortgage applications may have you scratching your head and wondering whether the housing market is actually stabilizing. This discrepancy, however, means that homebuyers are using cash to purchase homes rather than lenders because banks are currently employing strict regulations concerning who qualifies for home loans. Investors are also utilizing cash over credit because of the competitive edge it holds over distressed properties.
Real estate analysts are saying unequivocally that home sales are increasing both steadily and rapidly. In fact, as one analyst puts it–“buyers are coming out of the woodwork”. In fact, mortgage rates in New Jersey fell below the national average, currently standing at a record low amount. This represents encouraging news for people wanting to buy a home in New Jersey and especially in Bergen County.
Nationally comparing New Jersey homes to homes in other states, regional averages in the Garden State have steadily decreased since 2006, when the devastating housing market collapse occurred that caused Morris, Hunterdon and Bergen County homes to revert to 2004 levels.
Also assisting to promote the sales of homes in Bergen County is the fact that foreclosure filings have dramatically decreased in the past few years, with just one out of every 12 homes in foreclosure at the end of 2011.
New Jersey state assembly members further sought to advance the slow housing market by distributing $100 million in tax credits to individuals owning a home, with $75 million allocated for new home construction and $25 million to assist first-time homebuyers.
According to the manager of Mortgage Master’s Inc. Carl Nielsen, “Values have even held up in the New York City Metropolitan area. With the strengthening economy, foreclosure reductions and job growth, things will only start to improve for those looking to purchase homes in most states of the U.S.”.
Mortgage rates influence most homebuyers’ willingness to invest in a home and right now, rates are low enough to make just about any house for sale seem like a bargain. Even though the 30-year mortgage rate rose slightly from 3.94 percent to 4.12 percent, this current rate remains 1/2 less than the average reported in 1971.
Because monthly house payments are so affordable today, it would undeniably benefit any potential homebuyer to start researching the market and find something in which they are interested. With the many beautiful homes in Bergen County, as well as the state of New Jersey, selling at record-breaking low prices, families and investors should consider taking advantage of the housing market’s existing, optimal situation and live the American dream by owning their own home.