NJ housing recovery linked to first-time buyers

NJAR reacts to NAR's report

The New Jersey Association of Realtors (NJAR) in a press release reacted to the National Association of Realtors (NAR) findings that first-time buyers are the key to a successful recovery of the NJ real estate market.

Reacting to the (NAR) 2009 Second Quarter Metropolitan Statistical Area (MSA) Home Prices/State Resales report, NJAR's Executive Vice President Jarrod C. Grasso said, "the home price data signifies an unprecedented opportunity for home purchasers, particularly first-time buyers. Single family homes, apartment and condominium units are more affordable now than they have been in years."

"Signs of vibrant activity are evident in the New Jersey resales statistics," added Grasso. Although sales in the Garden State are 10.8 percent lower than they were in the second quarter of 2008, the seasonally adjusted, second quarter 2009 rates are up 11.8 percent from the first quarter of this year. This shows that buyers are entering the marketplace, thus lowering the inventory and driving up demand.

Though median sales price data indicates levels below those of a year ago, nearly all MSAs that cover New Jersey showed an increase in the second quarter of 2009 when compared to the first. Increasing prices paired with slight rises in interest rates signify that market stabilization is under way. Grasso commented, "The time to act is now, since prices may continue this strong, upward trend. We also anticipate sales to increase in the coming weeks and months as more buyers complete their first purchases in time to receive the tax credit."

To view a video of NARs Economic Report click here

As the clock winds down to expiration of the $8,000 federal tax credit at 11:59 p.m. on November 30, 2009, the opportunity lessens for financially capable first-time buyers to capitalize on the market and obtain the homes of their dreams.

Reported to you, first, in my August 5th posting, How the new regulation Z may affect U, I still encourage first-tme buyers looking to benefit from the $8,000 tax credit to act sooner rather than later to begin the process of procurrining a mortgage and finding a home.