Saturday, January 1, 2011

What will happen in the Housing Market in Ocean County, NJ, in 2011?

Before we can guess-timate at what may happen in the housing market in Ocean County, NJ, in 2011, we must take a look back and recognize exactly what occurred in real estate in 2010. Here's a short video summarizing the significant events in housing last year and their repercussions:


video

As we plainly see, the government's intervention in the housing market was well intended but mostly ineffective. The 3 major initiatives; Mortgage Modification (HAMP), The Home-Buyer Tax Credit and the unprecedented purchase of Mortgage Backed Securities, were all designed to stabilize Home Prices. FAIL!

For a more thorough and in-depth analysis of the Housing Market in 2010, please check out this blog post from the experts at Keeping Current Matters!

Now, understanding the "Law of Unintended Consequences", what will happen to the Housing Market in 2011? Without the interference from our government, the natural cycle of the free market should be able to run it's course (at last)! Here's another excellent post on this subject from the KCM CREW.

Here's our predictions for real estate in 2011:

video

So, to summarize; the "Laws of Supply and Demand" will be allowed to determine home values, Mortgage Interest Rates will continue to rise as the economy is allowed to recover and INTELLIGENT and REALISTIC Home-Buyers and Home-Sellers will benefit from the historic opportunity of a lifetime in real estate!

If you plan on living in Ocean County, NJ, 2011 is your year to buy a home! If you plan on "moving up" to a larger home in Ocean County, NJ, 2011 is your year to buy that home! If you plan on leaving Ocean County, NJ, in 2011, do it now before prices fall even further!

And the rest of the day to you...

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