Is This The Right Time To Sell Or Buy A House In New Jersey?

Before I became a Realtor I worked for the Investment Bank of Morgan Stanley. So I may know a thing a two about the economy. The current conditions of the Real Estate Market are such that it is time to sell and buy. Let me clarify. If you are selling with intent to buy elsewhere then it is the right time and you should do this relatively quickly. As the price of a home including the mortgage will probably never get any better in the next decade or so. Remember to include the cost of money in your equation. The price of money far exceeds the price of the house and yet most people only look at the price of the house. Of course if you have the luxury of paying cash for a house then you may disregard this opinion.

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Also, if you are buying for investment these same reasons apply and should entice you to make a purchase. Consequently, I do not expect rents to rise however. I suspect they will level off and may even slightly drop in the next five years.

If your reason for selling is strictly for net profit (unless you need to free up cash) you should hold your position or go long. Prices of homes will continue to rise in the short term as banks loosen restrictions on lending practices and more Buyers enter the marketplace especially in highly populated areas such as Rutherford, Lyndhurst, North Arlington, and the rest of Southern Bergen County NJ where I practice Real Estate.

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All market economies repeatedly (every several years or so) move through four stages of… (1) Expansion, (2) Peak, (3) Recession, and (4) Recovery. Historically the Real Estate Market has been one step or stage behind the US Stock Market which is currently in the Expansion stage with the Dow Jones Industrial Average breaking the 18000 mark recently. If history repeats Real Estate is very well positioned right now to enter a new stage of Expansion. Some may say we already have. A so called “Seller’s Market” occurs just before the Peak stage. However waiting for this Peak can be quite costly to a seller because of the inherent instability of the Peak stage whereby any negative economic occurrence can create the Recessionary period to begin, devaluing the property much more rapidly than the many years it took to peak.

References: Recent Economic Data as of 1/27/15 provided by Jonathan Coccia of Mortgage Masters Inc

Housing: Three reports issued in the last few weeks suggest the housing market is stable and shifting in an important way. Housing starts were up a strong 4.4%, led by single-family homes. Housing prices increased by .8% in December, much more than anticipated. Existing home prices grew by 2.4%, with sales of single-family homes growing by 3.5%. Strength in single-family building and sales suggests that first-time homebuyers are moving into the market.

Retail Sales: December retail sales were down sharply, but the good news is that the drop was mostly related to a decline in the cost of gasoline. On the bright side of the report was growth in spending at eating and drinking establishments, a sure sign of growing consumer confidence.

Jobs: The two most recent jobless claims report suggest that the job market, while improved, is still sluggish in its improvement. After increasing by 19,000 on January 15, the January 22 report showed a 10,000 decline in first-time applicants for unemployment benefits.

Inflation: Inflation is virtually non-existent at both the producer and consumer levels. With gas prices down substantially, prices on goods and services should remain at current levels.

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During the next two weeks several key economic reports will be released. The final revision to third quarter 2014 GDP, new and pending home sales, durable goods orders, consumer confidence and the latest Employment Situation Report are all scheduled. The Federal Reserve’s rate-setting Open Market Committee will also meet and their public statement will be read carefully to see if the stronger economic growth moves them toward a quicker increase in interest rates than currently expected.

I hope you found this information helpful if you are considering selling or buying a house in the Southern Bergen County NJ area.

The opinions expressed here within are my own completely independent of BHGRE Coccia Realty and its owners and subsidiaries.

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If you have any questions or wish to meet me for a Real Estate consultation please contact me as my information is below.

Best Regards,

Ray

__ “Sell Your Home Today With Ray!”

Raymond Ciampaglia, Realtor®

Phone : (201) 939-8900

Email : ray@mycoccia.com

Realtor Profile: http://njray.realtor

Web: http://www.cocciarealty.com

Better Homes and Gardens Real Estate | Coccia Realty
424 Valley Brook Ave | Lyndhurst, NJ 07071
Office: (201)939-8900 | Fax: (201)939-8910

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