Low Priced Home Sales in New Jersey Disappointing

Real Estate Articles

Low Priced Home Sales in New Jersey Disappointing

Previous

Contents

Next

It appears another well-intentioned federal government program has missed its mark. In fact, in some ways the federal tax credit program designed to stimulate home buying has had just the opposite effect. The program did bolster sales figures but after the program ended last year, serious cracks have reappeared.

In New Jersey, even lower priced homes are not selling. Of course, part of the problem is the on-going foreclosure crisis that drives home prices lower and lower. However, one would think as prices come down, demand would increase. Unfortunately, in New Jersey this is not the case.

Unsold home inventory in the Garden State has actually increased almost 30 percent from April 2010. A report was issued this week showing a decrease in home values across the U.S. -- over 8 percent in the first quarter of this year alone. It is clear that buyers realize prices will continue to fall and are waiting until prices bottom out.

Unsold inventory in New Jersey has increased across all price points. Typically it takes more time to sell a lower priced home than expensive homes. Currently there are over 44,000 homes on the market across the state priced below $400,000. This equates to a sales cycle of almost 14 months from listing to sale compared to 11 months last year.

In addition to the expired tax credit, part of the problem for lower priced homes is lenders are requiring a minimum of 20 percent for a down payment. This takes many first time buyers out of the market.

With high inventory levels in the entry-level pricing category, by far the largest segment of the home market, as well as on-going mortgage problems, it is going to be some time before this market gains traction. In New Jersey, the entry-level market is key to an overall healthy real estate market.

When will the New Jersey market recover? According to experts, you'll have to be patient. They do not expect significant improvement until the end of next year.

You can talk about... Low Priced Home Sales in New Jersey Disappointing

Tags: • demand • down payment • home values • home inventory • home prices • home buying • tax credit • federal tax • low priced • first time buyers •

• New Jersey Governor Vetoes Homebuyer Tax Credit (federal tax credits)
• Rhode Island Readies for Double Dip (real estate markets)
• Massachusetts Home Sales Slow (real estate markets)
• Florida Home Builder Thriving (first time homebuyers)
• More related articles for Florida Home Builder Thriving

Previous

Contents

Next

• <a href="http://realestate-library.classifieds1000.com">Real Estate</a>
• <a href="http://realestate-library.classifieds1000.com/low_end_homes">Low Priced Home Sales in New Jersey Disappointing (low end homes); Real Estate Articles</a>

Privacy & DMCA Policy -- Sitemap
low end homes Low Priced Home Sales in New Jersey Disappointing