Legions of New Jersey residents and their peers spanning the country might someday tell their children a real estate tale that pulses with drama and seems almost unreal in its details and implications.
And yet it is real. Moreover, it is a story currently playing out with an unprecedented sense of force and urgency for millions of Americans — specifically, for prospective home buyers and sellers.
It is no overstatement to note that those central participants in residential real estate transactions are presently affected by a perfect storm of factors influencing market values and activity.
Arguably, the residential real estate sphere has never before been marked by such a degree of turbulence and sheer dynamism.
Opportunities abound for both sellers and buyers
People believe that the residential real estate universe is a “zero-sum” game, where there is both a clear winner and loser in a home sale. The expression, “It’s a seller’s [or buyer’s] market” is almost an industry mantra. That adage has proven broadly true over time concerning cyclical activity (and, importantly, in select areas; as always, real estate developments have a distinctly local flavor).
However, the “seller’s [or buyer’s] market” adage is being sorely challenged these days. In fact, it is being stood on its head. It seems that even in what appears to be a raging “seller’s market,” buyers can be winners too. How so? A key principal with the federal home loan mortgage group Freddie Mac notes that a singular convergence of factors notably spells upside opportunities for both home buyers and sellers. Here are the key catalysts driving present residential real estate realities:
- Pro-seller conditions are spurred by very low current housing inventory, creating higher buyer demand and competitiveness (fewer houses available for more buyers)
- Pro-buyer interest rates (currently at record lows), which compel would-be purchasers to push forward despite rising home values
Downward-sliding interest rates are arguably the single most influential factor making for attractive “once-in-a-generation” opportunities for purchasers. Why? The current record low interest rates ensure buyers affordable monthly payments — even with larger loans. As a result, buyers are motivated to pursue more expensive properties, even at record-high asking prices. Simply put, buyers can afford more house for their mortgage money.
Current realities are spawning opportunities for participants on both ends of the buy-sell spectrum. The result is many transactions can be a “win-win” situation for both buyers and sellers. In this unique market, it is more important than ever that anyone seeking knowledgeable advice and proven legal representation contact the established New Jersey real estate law firm of Mariano & Coiro for a FREE & CONFIDENTIAL consultation. Our dedicated attorneys can be reached by phone at 800-800-9933 or through our firm’s contact page.