From Basking Ridge Patch: Morris, Somerset to Feel Real Estate Surge

Otteau said in a statement the housing demand in New Jersey “exploded off the chart in January” and that, with home prices at 2003 levels and low interest rates, 2012 is the “opportunity of a lifetime” to buy a home.

Drivers of the increase in purchase contracts include more consistent job creation and improved consumer sentiment, he said.

“The recovery in real estate has now begun,” he said.

This certainly feels true, and Jeff Otteau is one of the best analysts we have in the area.  The argument against this includes the national unemployment and inflation numbers, just not the one’s most often reported in the major media.  The CBO states real unemployment is 15% and analyst reports put the inflation rate for non-capital (e.g. most expensive) purchases at 8.1%  That’s quite a lot for buyers and sellers to overcome and take home prices on an upward path.  But, New Jersey is doing better that most of the rest of the country and our local area of Morris and Somerset counties are certainly one of the most desirable anywhere.

I say this feels true because since the turn of the new year, we have seen a larger pool of buyers that is, at least for now, significantly greater the the number of active sellers with listings.  Of course, more listings will be coming on the market over the next 90 days, and no one can predict the future (except Mr. Otteau) but it does seem as if there may be upward pressure on pricing if the laws of supply and demand apply.

Residential mortgage interest rates are currently low, at around 3.75%, the lowest I’ve ever seen.  That helps, too.

Bring on the spring!

And if you’re thinking about selling, let us help show you how to position your home for the greatest return.  Drop us a line or give us a call anytime.  After all, that’s what we’re here for.  🙂

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