How come NJ house prices arent falling like the rest of the country?

akj147: How come NJ house prices arent falling like the rest of the country?
How come NJ house prices arent falling like the rest of the country? Will they ever? I want to buy a house, can buy a house, but am unsure because I dont want to buy and then my house value drops. Please provide information.

Answers and Views:

Answer by perlas
nj still being the most expensive state I dont think will drop that much, but nationwide this is a question marck should we buy homes???? the economy is not stable
I have some friends the got pre approved got the down payment but they are not sure either

Answer by Heidi M
NJ house prices have fallen a LOT! My inlaws luckily sold theirs in Morris County just in time about 2 years ago. If they had waited another 6 months or so they would have NEVER been able to get what they did for it. Houses around them had to dropped in value by at least 60K over the next year. They have been renting and are now making an offer on a house that is at least 50K less than it would have sold for a few years ago. It’s still a very expensive place to live comparatively, but it’s been worse! Just ask anyone trying to sell their house now! If I were you I would look around and make low offers, many people can’t sell, and are desperate. Do comps, find out what houses in the neighborhood sold for several years ago. You’ll see, you can really get a good deal!

Answer by Patrick
Real Estate is a very local market. Just look at prices around the country, how prices have fallen at different rates around the country and you will see.

As for prices in NJ, again, it is locally centralized. Where I am in NJ, prices have increased the past year. There have been 3 sales of homes in my development this past year. Each sale has been higher than the last. The increase seems to be about 4% this past year. Now this increase is MUCH smaller than the double digit increases that were happening during the booming market of the past few years, but I am happy with the 4% increase.

One of the other answerer showed that in Morris county prices have declined. It just happens to be that where I am, it is still considered an up and coming part of the state (South Jersey, about 20 minutes from Philadelphia). It’s far enough to be semi-rural but close enough to bring you right into the city when you want to be there.

As for a rise/drop in value, look at purchasing a property as it being your home. Use it as such. Compare buying to renting. A lot of this mess was people thinking “why put money into a landlord’s pocket when I can buy and make money”. You can see how that mentality got many people into foreclosures. Truly to buy a house you must be ready.

FIrst thing to consider is if it is the right time. Are you ready to lay down roots and stay in the same place for 5-7 years minimum. If you aren’t going to own the house that long it isn’t worth it. Remember, renting an apartment has no upfront costs. You pay a security deposit which is held until you move out then (it should be) returned.

Buying a house has closing costs associated with it. Be prepared to drop 4-6 percent of the price you are paying on closing costs. We’re talking $ 4,000 for a $ 100,000 home. That is a significant investment. That is also money you don’t get back. If you are going to put that kind of money out, be ready to stay a while.

Another thing to consider is are you financially ready? You should have truly a minimum of 20% of the purchase price to put down. I say this because this way you avoid having to take out 2 loans and you can avoid paying PMI for the house. This keeps money in your pocket.

If you haven’t been able to save money now, you won’t be able to when you get a house either. There are repairs that need to be done. these are repairs that you must pay for. No more calling someone to fix it and not worry anymore. Heater, roof, leaks, water heater, carpets, hardwood floors, you name it. All your job to fix.

I wish you luck!

Answer by Primus Pilus
All prices in the America market have fallen and they will keep on falling until the government does something to the economy.