1. The “Bottom” was 2008!
When we look at the chart below, we can see that sales in Ocean County “bottomed” out in 2008 and started to climb back up in 2009 (thanks in large part to the $8,000 Tax Credit)! With the “Extension” and “Expansion” of the Home-Buyer Tax Credit until April 30th, 2010, we should sales in Ocean County, NJ, continue to increase in 2010.
2. Home Prices Should Continue to Decline in 2010!
As we can see in this chart below, although sales in Ocean County rebounded in 2009, prices continued to drop! Many “experts” are forecasting an increase in the number of “distressed properties” (foreclosures and short sales) entering the real estate market in 2010. Combined with an existing inventory of homes in Ocean County averaging a sales pace of 13.15 months (How long it would take to sell of the existing inventory of homes if NO other homes were to come on the market), today’s home-buyer has a wide selection of homes to choose from a la the law of “Supply and Demand”.
3. Mortgage Interest Rates Are STILL Historically Low!
What’s the old saying? “What goes up must come down”. Well, the reverse is also true and the “era” of 5% mortgage interest rates may be coming to an end sooner than we think! Sooner or later, we will have to start paying off this entire “stimulus package” in the form of higher interest rates which translates to higher monthly payments. Notice the graph below which illustrates that we may NEVER see an opportunity to buy a home in Ocean County, NJ, like this again!
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