Affordability in Real Estate Market Creates Opportunities for Many
Buyers taking advantage with first-time purchases and trade-ups
Edison, NJ – July 7, 2009 – (RealEstateRama) — Housing affordability is higher in New Jersey than it has been in years, and buyers are taking advantage.
In the first quarter of 2009, 56 percent of households in New Jersey could afford to buy an entry level home, compared to 44 percent of households a year ago, according to the NATIONAL ASSOCIATION OF REALTORS® (NAR).
Major contributors to the higher rate of affordability are lower median home prices, which have declined from $308,600 in the first quarter of 2008 in New Jersey to $299,800, in the first quarter of this year, and record-low interest rates. According to NAR, in the first quarter of 2009, the average interest rate in New Jersey was 5.14 percent, compared to 6.02 percent in first quarter of 2008, a decrease of almost one full percentage point.
“Rising affordability means a lot of people who maybe couldn’t afford to purchase a home in recent years, can now take advantage of the opportunities presented by today’s market conditions,” said New Jersey Association of REALTORS® (NJAR®) 2009 President Diane Dilzell. “Financially stable buyers in many situations are finding themselves in a great position to enter the market and find a home that fits their budget.”
First-time buyers have a tremendous chance to take advantage of affordable homes, especially with incentives available like the $8,000 federal tax credit for anyone who hasn’t owned a home in three years. Also, for people who have dreamed of a bigger home or a move to a certain neighborhood they might have previously thought was out of their range, opportunities exist to trade-up.
“The high affordability in New Jersey will also be advantageous for sellers,” said Dilzell. “As affordability remains high, demand will increase, and inventory will drop. It’s a condition that will help drive the real estate market to a healthy equilibrium.”
Paired with other buyer incentives, like the first-time home buyer tax credit of up to $8,000, the high affordability in New Jersey creates a unique opportunity for buyers considering entering the real estate market.
Talk to a REALTOR® about conditions in your local market. For more information on housing affordability, or to find out more about taking advantage of today’s real estate market in New Jersey, visit www.REALstoryNJ.com.
The New Jersey Association of REALTORS®, with approximately 50,000 REALTOR® and REALTOR-ASSOCIATE® members, is one of the largest trade organizations in the state. NJAR®‘s membership is comprised of real estate professionals who subscribe to a strict code of ethics and are members of the national and local REALTOR® organizations. As the leading advocate for the real estate industry and private property rights in New Jersey, NJAR® is committed to protecting the dream of homeownership. For more information, please visit www.njar.com.
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For media inquiries contact:
Lauren Castellano
Media Coordinator
Phone: (732) 494-4709
Fax: (732) 404-8130
E-mail: lcastellano (at) njar (dot) com
For legislative related media inquiries contact:
Danielle Alpert
Government Relations Coordinator
Phone: (732) 494-4730
Fax: (732) 404-8127
E-mail: dalpert (at) njar (dot) com
