Lately I am asked the same question from friends and family, “ Why should I buy a house now?” I am sure the current market conditions are the catalyst for this question because three years ago I couldn’t stop people from telling me their latest Real Estate conquest. New Jersey residents may be surprised to know that today’s real estate market is not all bad news. I have complied a short list of reasons one might consider buying a home now.
- Homes in New Jersey have generally maintained their values. You may have heard horror stories about Florida, California and other markets losing 30-50% of their value. Not so with New Jersey. Most counties in New Jersey have lost 12-18% over the last few years and the national seven year home appreciation rate is 37.8 percent, New Jersey's is more than double that amount at 80.4 percent. That is correct in the past seven years people in this state have seen an average appreciation of 80.4%.
- Owning a home is the best wealth builder. Over the last decade, the median prices of homes in almost every metropolitan statistical area that covers the state have more than doubled; illustrating that homeownership is a great investment that consistently outperforms the sound financial investment that historically outperforms the stock market in building long-term wealth. New Jersey home buyers who purchased their homes seven years ago have accumulated an average of $156,300 in home equity.
- Now is the time to buy, especially for the first time homebuyer. Imagine walking into your favorite mall and finding everything on sale. That describes current market conditions in the Real Estate market. Buyers can also enjoy lots of inventory which makes finding your dream home much more of a reality then say 3-5 years ago when people were more inclined to settle. Finally, buyers can enjoy great interest rates near historic lows. First-time homebuyers do not have to sell a house in order to buy one. They can take advantage of “sale” prices without having to sell their current home at a discount.
- The difference between a house and a home. Sure there are tax benefits and financial security that comes along with homeownership but you must admit that a home is much more than a place to park your savings. A recent survey of New Jersey homeowners revealed that the desire to establish a household and have a place to call their own was the number one reason for buying a home.
- If you’re selling low you are also buying low! Current homeowners who are looking to upgrade can take advantage of a more expensive home being offered at a lower price. What this means is even though you may have to accept a more realistic price for your home, the seller of the home you wish to purchase is in the same situation. This is a percentage issue and if you are “buying up” you will come out ahead.
- New Jersey is a great place to live! There are many positive economic and market forces in the Garden State that support the long-term health of residential real estate. Reflecting a strong employment market, New Jersey's median income of $64,470 is the second highest in the country. Also, excellent school systems, proximity to New York and Philadelphia, a thriving tourism industry and an extensive transportation infrastructure all enhance the vitality of this area.
If you are thinking of buying a home call Coccia Real Estate Group. We live and work here. Our children attend school here. Who would be better to guide you through the home buying process.