Real Estate in New Jersey

Real Estate in New Jersey is a very valuable commodity.  Whether you are referring to North NJ, Central NJ or South NJ; real estate in New Jersey has a tremendous amount of value.  This is if you are interested in selling or buying.

This is from a recent article from the Courier Post Online:

Despite predictions, real estate market remains strong for many

Friday, April 28, 2006

ATLANTIC CITY - For much of this decade, two words have circulated on the street: bubble burst. The thriving real estate market, fueled by low interest rates and a humming job-generating economy, would come crashing down.

But it hasn't happened yet, according to those attending the Atlantic Builders Convention at the Atlantic City Convention Center.

The three-day gathering of more than 13,000 builders, developers, remodelers, subcontractors and consulting professionals throughout the Northeast, closes today.

"I hear all the doom and gloom stories. They've been saying it will plateau for four years and it's still going on. Every year we're happily surprised," said Bill Elmer, a window sales expert with Strober Building Supply's Cherry Hill office.

Business has been consistent in the last several years, said John R Parry Jr, owner of JRP Arch, LLC, a Moorestown architecture firm. "We've expected the bubble to burst two or three times. But it hasn't."

Housing prices continue to rise in New Jersey, 59 percent above the national average. Still, the signs of a real estate slowdown lurk beneath the surface. Nationwide, a costly war, increasing interest rates, a federal deficit and high energy costs could derail an economy in its 53rd month of expansion, said Joseph Seneca, professor at the Edward J. Bloustein School of Planning and Public Policy at Rutgers.

"Inflation is the wild card for 2006, with rising oil prices, an increase in commodity prices, slow productivity gains and rising interest rates," Seneca said in his annual economic forecast at the convention. The Feds expect to raise interest again next month, he said.

The situation in New Jersey is even more ominous.

Despite the highest income level in the nation and record number of jobs, unemployment rates are going up in New Jersey and down in the U.S. Between 2000 and 2005, the percentage of per capita income in New Jersey above the national average slipped from 29 to 27 percent. "While New Jersey struggles with difficult and painful choices in its budget, other states are doing the opposite: increasing expenditures and lowering taxes."

North Jersey is in worse shape than the Southern end of the state, Seneca said. The seven counties in South Jersey grew more rapidly this decade compared to the remaining 14 counties in terms of population gains, employment and personal income, Seneca said.

"Relative cost advantage in housing and business continues to attract development. North Jersey is pricing itself out," he said. Housing sales throughout New Jersey for the first three months of 2005 mirrored the same quarter in 2004.

When interest rates fell in April, sales surged ahead at a record pace through August, when the industry hit a wall, said Jeffrey G. Otteau, president of the Otteau Valuation Group Inc., an appraising and consultant company from East Brunswick. Otteau attributed the stagnation to a decline in affordability and a loss of purchasing power.

2005 also ended with inventory up 41 percent in the final four months to go along with a 15 percent differential in sales compared to the first eight months. "That has set the tone for 2006," he said.

Sales are up for the first quarter of 2006, but down 12 percent from the pace set last year. And inventory is up 65 percent. Buyers are waiting to see if there really is a bubble, Otteau said.

"71 percent of the population expect a price collapse in the next 12 months. That won't happen. But the fear of that drummed into the public has buyers worried. They have no sense of urgency," he said.

 

 

 

Tip #17

Home Buying Tip, Priorities:
When you are looking for a home to buy to live in you should try not to fall into the trap of “more is better.”  Although you do want to be able to feel that you did your due diligence the more houses you look can create frustration and either turn you off completely or make you purchase the wrong house.  You should have 3 or 4 things that you “need” and others that you would “like.”

Remember to always keep your focus on your priorities.

 

Tip #18

Home Selling Tip:
Obviously presentation is a key factor in selling a house.  Generally, the minor repairs and niceties bring up the value of your home a lot more than the cost to do them.

Touching up the paintwork, new door handles are some of the easy cheap ways to create a positive impression of your home.  Airing out the house is another easy to create a fresh atmosphere.  The main thing for the house is to be very presentable.