If you’ve been thinking about buying a new home in New Jersey, you’ve probably been watching the economy and the interest rates like everybody else. And you may be wondering if now is the time to buy—or if you should wait it out a while.
A recent HSH Market Trends article (January 20, 2012) reported that: “Low and stable mortgage rates and a modestly improving economy are starting to produce positive effects on the nation's housing market. While starting from extraordinarily low levels improvement are still of course tenuous, [but] there have been accumulating signs of improvement for months.” What does that mean for you? Will rates edge lower, or are they going to begin to creep up?
One thing to consider is that interest rates are only part of the equation. And in the grand scheme of things, microscopic changes in interest won’t have that big of an impact on the final cost of your home. What are some of the other factors you should be thinking about?
Why are you thinking of building or buying in the first place? If your family needs are such that your current home isn’t adequate, that’s a pretty compelling reason to move. If you had smaller children who have outgrown the space you had, maybe now is the time to make a move. If you’ve become uncomfortable in the neighborhood where you’ve been living (congestion, crime, noise, etc.) it’s hard to put a price on the value of a move.
Would buying or building be a good long-range investment? The days of “flipping” houses are gone. We need to take a long-range view of things. And even if your house doesn’t increase in monetary value as quickly as it might have a few years ago, you still have the benefit of living in the kind of house your want—and enjoying it while you’re there. Not all returns on your investment are measured in dollars.
Supply and demand. Right now, housing inventories are low. As the economy improves, more people will move into the housing market. That means demand will increase and it will be hard for builders to meet that demand initially. Right now you can still get builders going on a new project fairly quickly. As things heat up, you may find yourself waiting in line for the builder you want to be available.
Is now the time to build or buy a new home in New Jersey? That depends on your specific situation. It’s a good time if it fits your specific needs. And if your specific needs include a home in the seclusion and serenity of Sussex County, we invite you to take a look at the great opportunities available in Crystal Springs.