NJAR® RELEASES STATEMENT REGARDING 2nd QUARTER HOME SALES & PRICE REPORT
Edison, N.J. – August 12, 2011 – (RealEstateRama) — Reacting to the NATIONAL ASSOCIATION OF REALTORS®‘ (NAR) 2011 Second Quarter Metropolitan Area Home Prices/State Resales report, New Jersey Association of REALTORS® (NJAR®) Chief Executive Officer Jarrod C. Grasso today issued the following statement:
“For the second quarter of 2011, New Jersey’s metro areas held their own in terms of median home prices, with all areas demonstrating a quarterly price increase. Two bright spots that displayed increases from the second quarter of 2010 were Wayne, N.J./New York and Atlantic City, N.J. Despite minor annual price declines in the other Garden State metros, all of them outperformed the national price decrease of 10.2 percent. Considering the volume of distressed properties on the market right now and those still in the judicial pipeline, New Jersey’s prices have remained stronger than expected. Prices should strengthen even further upon clearing of this surplus.
The Garden State’s drop in existing home sales was significantly higher than the national average, but so was that in New York, Pennsylvania and the Northeast region in general. With numerous factors outside of the industry affecting consumer confidence, they are in turn affecting home sales. These factors include unemployment, foreclosure volume, and tight lending requirements. Another important point to consider in the year-over-year analysis is that last year during this period, potential buyers were timing their purchases to obtain the federal home buyer tax credit.
After their expiration in September, Washington is considering discontinuation of the high FHA, Fannie Mae and Freddie Mac loan limits passed as part of the 2009 stimulus. For financially capable buyers, the ability to obtain a larger loan from a government sponsored enterprise opens up more options and is one more positive reason to consider entering today’s market. For a high-cost state like New Jersey, these lower loan limits would make it more difficult for families to obtain the mortgages necessary to buy a home here.
With an already fragile industry at the whim of external factors, now is not the time for lawmakers to impede the ability of credit-worthy buyers to enter the market. In addition, the NATIONAL ASSOCIATION OF REALTORS® estimates that one job is generated for every two home sales. It is time to put housing first.”
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The New Jersey Association of REALTORS®, with approximately 46,000 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.
For media inquiries contact:
Lauren Castellano
Director of Communications
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
