That’s no dromedary.  That graph of the past two years’ inventory index looks more like a Bactrian camel (two humps, native to the dry steppes of Central Asia).  In May, 2008, we saw the tail flick up a bit, but it still looks like we’re on our way to a more balanced homes market over the next year.   

Increased affordability, the drop in home prices, is breaking the cycle of low sales and high inventory.  Although the pace of Hunterdon home sales dropped a little in May, Read the rest of this entry »

Bucking the trend

Jersey’s housing market is doing better than most other states’
Wednesday, May 14, 2008
BY SAM ALI 
Star-Ledger Staff

The median price for a single-family home fell 7.7 percent, to $196,300, in the first quarter, compared with the same period last year — the largest year-over-year decline since the National Association of Realtors began reporting prices in 1982.

But the Northeast region bucked the national trend, with existing home prices rising 3.2 percent during the quarter, to a median of $280,000. The Northeast was the only region in the country Read the rest of this entry »

Despite the continued talk of a national recession, home sales here in Hunterdon County, New Jersey - rose again in May for the fourth month in a row.

There are two reasons why national media message differs from Read the rest of this entry »

When it comes to markets, humans behave like pack animals.  Only on Wall Street do bears and bulls run in herds.  Some get gored, some never catch up but the quick-witted run ahead of the pack. The housing market responds more slowly than stocks and bonds, but the same rules apply.  

The homes market peaked over two years ago and we’re nearing the end of this cycle.  Sales in Hunterdon County have increased as homes became more affordable.

Now is probably the best time to be a home buyer in the past 15 years!  Home prices have dropped, the selection is huge, rates are low. 

The problem with waiting for clear signs that prices are rising again - apart from putting your life on hold - is that you’ll miss the bottom of the market.  You’ll only have evidence of rising home prices a few months after they’ve started moving up again. 

But there’s a more immediate problem.  Home prices in northern Hunterdon County, NJ may drift down over the next year, but rising mortgage rates will probably wipe out any savings.  Your monthly payments will be about the same or higher.  

Inflation is on the prowl, eating up your paycheck, even if its overshadowed by talk of a recession.  The Fed made clear its latest interest rate cut would probably be its last for a while.  If rates go up by 1/2 percent and prices fall by 2-3 % your monthly payments remain about the same, as seen in this table from Jeff Otteau, the New Jersey Appraiser:

Please call me for a free consultation. 
                   Don Sherblom     (908) 303-8130
Personal Service, Professional Results!

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Home sales trend upward in Hunterdon.