Each year brings with it its own set of trends and changes within the housing market, and 2018 in New Jersey has been no different thus far. Here are 3 things you need to know about the NJ housing market this year — one of these could be the reason you decide to buy sooner rather than later, or to call Homeland for advice today.
Interest Rates are Rising
Always keep in mind that mortgage interest rates vary based on a number of factors, and no two buyers have the same situation. Rates change daily and sometimes intraday; Lender A may have the lowest rate on Monday, but on Tuesday they may offer the highest.
With that being said, current market and future projections all indicate an increase in both interest rates and property values. As Forbes predicted in late 2017, interest rates have seen an “increase in 2018, as the Federal Reserve continues to tighten monetary policy and implements the plan to reduce its balance sheet.”
Loan costs have also increased year over year since the mortgage crisis. Taking these factors into consideration, it’s safe to say purchasing a home now will be cheaper than it may be in the future.
Property Values are Rising
As mentioned above, the home value appreciation forecast has been continuously rising higher than ever. What does this mean, in a nutshell? If you buy your home today, it could be worth a significant amount more in 1, 3 or 5 years. The graphic below breaks this down in a way that’s easy to visualize.
There are Less Homes for Sale
According to an article from Market Watch, “the National Association of Realtors recently cut its forecast for annual home sales in 2018,” which means that there are less homes for sale currently than in the recent past. With real estate inventory coming in below average levels and buyer pools growing fast, this creates an increase in demand. There are fewer homes for buyers to choose from, which contributes to the pronounced uptick in home prices.
These three current trends all point towards buying sooner than later being in your best interest. Visit www.homelandlending.com today to learn more about the types of mortgage loans you may be eligible for, see what you can afford using our payment calculator, or call us for some general advice — no catch!