Looking to Buy or Sell a Property in Princeton, New Jersey ?

According to Zillow’s 2021 housing market predictions, annual home sales growth will be the highest in 40 years in the United States at an estimated 21.9%. Home buyers flock to homes unequally, converging upon the most attractive ones, and in a thicker market that means this subset of homes draws far more buyers than before.

zillow

The 2020 real estate market in New Jersey was unlike anything seen before, according to the New Jersey REALTORS organization. The median sales price for homes rose 14% last year, and New Jersey REALTORS expects the market to continue to show strength in 2021.

NJ Realtors Association

The pandemic has had a big impact on the real estate landscape in New Jersey, upending the market as buyers eager to get out of the city look for houses with more space.

Millenials

In particular, millennials are looking for first homes or trading up in housing size due to their desire to leave the major cities and find space for growing families. (A market grows “thicker” when it has more participants on both sides, while holding their proportion fixed.) The experience of heightened competition around those homes affects perceptions.

Higher Sales Prices

And when that culminates in higher sales prices, those sales serve as “comparables,” which inform asking prices on subsequent listings , lifting housing prices more quickly. At first, the pandemic slowed the housing market, but then it took off. What started off as a bright year for the housing market and the economy was soon derailed by a global pandemic and severe economic recession.

Impact of Pandemic

A larger trend in the face of the pandemic is that people will be moving from higher density living to lower density areas, for example from Manhattan to the suburbs, and Healey expects that trend to continue for the foreseeable future. And in terms of COVID, people really want their own space.

The pool of potential homebuyers has increased, in part due to the pandemic. But perhaps the most important factor is the sheer rise in volume of buyers. Adding more buyers and sellers can generate frenzy all on its own, even without altering their balance.

And that would be a welcome development in a city where only 22 percent of households are homeowners. Home prices were soaring in the surrounding suburbs, with stories of lines around the block for open houses and bidding wars.

As the pandemic has made suburban living more attractive to many city dwellers, home prices and sales volume have risen over the past year, according to the multiple listing service. A year ago, there was so much uncertainty surrounding the pandemic and politics, which made real estate somewhat of a gamble, at least in hard-hit New York City.

One of the big winners has been the housing market, which saw home sales and prices hit decade-plus highs following decade lows in the span of just a few months. Because of the activity and the rising prices, it’s a great time to sell, but where would they go,” she said. Prices jumped 10 percent over the same period, to a median of $700,000.

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With stagnant home prices and lackluster sales, will the housing market cool off? Home supply may still limit buyers, but low interest rates make it a good time to buy. (iStock)

The housing market typically heats up when warm weather rolls around in spring and summer, but the past year has taught us that nothing is “typical” in real estate.

Spring 2021 is already defying seasonal trends with a slight drop in home sales and a big drop in inventory, according to a report from the real estate company RE/MAX. Between 2015 and 2019, home sales were up from April to May by 53.4% on average. In 2021, home sales actually declined by 0.2% during this time period.

Just like home sales tend to ramp up around springtime, median sale prices typically increase by 3.2%, as well. This year, though, home prices stayed the same for both months at around $320,000. The number of listed homes also decreased by 7.1% at a time when new construction usually floods the market, although the demand for housing hasn’t fallen. 

“The market still tilts mainly toward sellers, but we could be seeing the first signs of a return to more balance after the hottest stretch of sales in years,” Nick Bailey, president of RE/MAX, said in the report. “Ultimately, that would be good for both buyers and sellers.”

Homebuyers can take advantage of the more merciful real estate market while also getting a good deal on a mortgage, thanks to mortgage rates hovering around record lows. If you’re ready to begin your home search, start by shopping for a mortgage. Compare mortgage rates on Credible so you can find the lowest rate for your situation.

30-YEAR MORTGAGE RATES TRENDING BACK DOWN, OTHERS HOLDING STEADY

How to be a competitive buyer in a housing boom

Although home prices and sales are finally leveling out after months of a bullish real estate market, prospective buyers aren’t out of the woods just yet. With limited housing inventory, there will still be a fair amount of competition, so it pays to be prepared before you start shopping for a home.

Here are a few tips for setting yourself apart from other home buyers, so you can submit an offer on the house you really want.

LOW DOWN PAYMENT MORTGAGE OPTIONS FOR FIRST-TIME BUYERS

Come prepared with a preapproval letter

The very first thing that seller’s agents expect from potential homebuyers is a preapproval letter, which proves that you have the funding necessary to purchase a home. Thankfully, getting preapproved for a mortgage is simple, and you can take care of virtually the entire process online. You just need to provide proof of identity, income, and assets to see what kind of mortgage terms and rates you may be eligible for.

You can get preapproved for a mortgage on Credible’s online loan marketplace.

DOES HAVING STUDENT LOANS MAKE IT HARDER TO BUY A HOUSE?

Be flexible with your schedule (and your closing date)

The market’s showing signs of cooling off, but buyers will still face a time crunch during the home shopping process. On average, houses went under contract just 28 days after listing during the month of May, with certain metro areas seeing even shorter timelines.

This means you’ll need to free up your schedule during the home purchase process since homes will be off the market quickly after being listed. When a home that meets your criteria is put on the market, you may need to cancel your plans and schedule a tour that same day.

It also helps to be flexible with your closing date, because this may give the seller a more favorable moving timeline. Something as simple as a flexible closing date may be able to set your offers apart from the rest — without costing you anything extra.

‘NOW IS A GREAT TIME TO BUY’ DESPITE HOUSING BUBBLE FEARS, MORTGAGE BILLIONAIRE SAYS

Look at homes below your spending limit in case you need to offer above asking price

Although home prices were flat between April and May 2021, they have increased 17% since May 2020. The price jumps were even higher in some metro areas with hot housing markets, the report found:

1. Boise, Idaho: 40.7%
2. Augusta, Maine: 37.8%
3. Phoenix, Ariz.: 32.9%
4. Los Angeles, Calif: 32.0%
5. Detroit, Mich: 30.2%

Many homes are still selling far above the list price, so it’s worthwhile to look at homes that are below your absolute maximum. You can use a mortgage payment calculator to see how slight fluctuations in loan amount can affect your monthly payments.

Thanks to low mortgage rates and a much-needed break from rising home prices, now is a good time to buy a home. 

Original Article Appeared at : Source

Are you interested to learn more about the Greater Princeton, New Jersey Market Conditions, feel free to contact me at
609-915-9665.

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