We have been seeing a strong recovery in the real estate market in our local area and with the 2015 Spring Market rite around the corner there are several telltale signs that this great recovery should continue this year as well.
Home Prices have Stabilized Overall
Home prices in the U.S increased by about 4.5% last year, although a slightly smaller increase that 2013 when prices nationally rose by nearly 11%, this is still a sign of price stabilization.
Job Market & Mortgage Rates
Probably the two biggest factors that support the Housing Market are the Job’s Market and Mortgage Interest rates. As many of you have seen in the news, companies are continuing to add jobs thus lowering the unemployment rate, which has dropped to 5.6% in December of 2014 in turn causing consumer confidence to rise. As the job market continues to improve thus increasing consumer sentiment, more home buyers (and first time home buyers) are entering the market. Moreover Mortgage Interest rates have hit new lows with the 30 year fixed rate moving as low as 3.67%. In addition to the increased jobs market and lower interest rates the final factor that is driving the housing recovery are the recent programs offered for Freddie Mac & Fannie Mae that would allow first – time home buyers to purchase homes with lower down payments (3% instead of the previous 5% min.) With the cost of the FHA mortgages being reduced in turn it allows for monthly mortgage insurance premiums to be reduced. Taking all of this into consideration we are expecting a vast increase of new home buyers who are confidently entering into the market.
Rents Have Continued to Increase
Additionally Rental Prices, especially in our area have continued to rise. This along with the low mortgage rates along with easier mortgage availability will encourage those who were renters, to become new home buyers.
Wrapping it up
In our local market we are continuing to see homes in good location and condition selling faster, and in fact at times with multiple offers.
It is our hope that this summary provides you with an understanding of what the current state of our local market is. If there is anything else that we can do for you, please let us know as it would be our pleasure to assist you and answer any of your Real Estate questions.Rahul and Smitha Ramchandani are a licensed real estate Broker-Salesperson/Sales Representative Team with Keller Williams in New Jersey. They are Buyer Specialists and Home Marketing Experts. Their team specializes in North Central New Jersey including towns such as Boonton, Chatham, Chester, Convent Station, Denville, East Hanover, Florham Park, Hanover, Harding Twp., Mendham, Montville, Morristown, Morris Plains, Morris Twp., Mountain Lakes, Parsippany, Randolph, Rockaway, Whippany www.SRRealEstateGroup.com | www.MorrisHomes.com | www.TheTownhouseExpert.com | www.NorthernJerseyRealEstate.com