The following is a re-print from Lawrence (Larry) Flick, Chairman and Chief Executive Officer of Prudential Fox and Roach Realtors
Our Local Market
Real estate markets are like the weather: there is no national forecast. The press may quote statistics from markets in the most affected areas of the country (California, Florida, Michigan and Nevada) as if they represented the entire nation, but real estate is local. Yes, our market is slower than in the peak years of 2004 and 2005, but it is still quite stable.
Locally, the number of homes for sale and the average time on market has increased, but this works in a buyer's favor. In "hot" markets, there are fewer homes for sale and buyers often have to compete with others to purchase the same property. During this current period when our market has cooled, buyers can choose from a greater selection of homes and experience less stress while making a decision about which house to buy.
It's important to realize that home prices in our area are not expected to decline, so waiting to buy with the hope of lower prices may not be the best strategy. In fact, prices rose slightly the first quarter of 2008.* Within our local market, there are pockets where they have gone down a little, areas where prices have held steady, and others that continue to appreciate. The nationally recognized Private Mortgage Insurance Company's risk rating for our area predicts a mere 1.4% chance that prices will drop in the next two years. And remember that when you do buy, home ownership has proven to be an exceptional investment over the long-term, despite some fluctuations in prices that occur from year to year.
* Office of Federal housing Enterprise Oversight News Release, May 22, 2008. Philadelphia MS includes Southeastern PA, Northern Delaware, and Southern New Jersey. Price increase for Philadelphia MSA reported as 1.51% 1st quarter 2008 over 1st quarter 2007.
For all your South Jersey shore, and Brigantine, NJ real estate needs, contact any member of The Tom Johnson Group, your Shore Home Connection.
