Are you thinking about buying a home right now in New Jersey? In this time of uncertainty and economic upheaval, engendered primarily by the pandemic, many potential home buyers are facing a tough dilemma; should they buy now or wait. Some industry watchers say now is definitely the time to buy while others caution waiting to see how things play out. So let’s see what the real estate experts actually have to say about buying a home right now in New Jersey.
Why Buying a Home Right Now May Not Be a Good Idea
Some real estate experts suggest that potential home buyers should wait. They say buyers should hold off on buying a home right now in New Jersey until they see what’s going to happen in the neighborhood where they want to buy.
Their reasoning for this caution is that the neighbor’s financial problems – what happens to other homes in the neighborhood – could dramatically affect the value of your home. The issue here is that it’s very likely some (or many) of the homes will be foreclosed on.
Remember that many people have deferred mortgage payments for a few months, and they may have to pay those deferred payments in a lump sum before long. But many people are also out of work, and they’ll also have to pay deferred payments when their unemployment will (or has) ended.
As a result, some homeowners won’t be able to make those payments. And then foreclosure follows.
After foreclosure, those homes will likely sell for less than market value. Then those below-market prices with be used in the comps to assess the value of your home. And your home will be worth less.
So, according to this reasoning, waiting rather than buying a home in New Jersey is the better course.
Why Buying a Home Right Now Is Definitely a Good Idea
But, on the other hand, more real estate experts say that now is the perfect time to buy a home in New Jersey. And here’s why . . .
First of all, mortgage interest rates are at an all-time low. And although home prices are still increasing slightly, these low-interest rates make buying a home a sound financial move. Lower interest rates increase your purchasing power and mean less paid in interest throughout the life of the loan
In addition, inventory is still low – with no signs of this trend reversing any time soon. So now may very well be the time to buy in order to get in ahead of the possibility that inventory shrinks even further. And in some markets, people are buying up homes as soon as they are listed – and often at higher than asking prices.
Also, there’s really no need to put off buying a home in New Jersey out of fear of or concern about COVID-19. The real estate industry has adapted, and agents are taking many precautions to ensure buyers’ health and safety.
A lot of agents, for example, have moved to working remotely and conducting business virtually to reduce close contact and risk. Virtual showings and remote closings are becoming the norm. And for those who still want in-person showings, agents are implementing safety measures, providing such things as hand sanitizer, gloves, and shoe coverings.
Now Is the Time
So the weight of expert opinion says now is the time to buy a home. Mortgage interest rates may never be this low again, and it may be a long time before supply catches up with demand. Now, according to most real estate experts, is the time to act. If you’re ready to take advantage of these favorable conditions and get started buying a home right now in New Jersey, contact us today at 855-966-DEAL.