PRESIDENT'S MESSAGE

SOUTH JERSEY REAL ESTATE
The conditions are right for buying your next home this year.
By Michael Paparone
Builders League of South Jersey President 2009.

According to the nightly news and all the headlines, the entire real estate community nationwide has fallen into a big black hole that we will never get out of. The news resonates the negativity like an echo in a cave.

There's no glossing over the facts, however: Our country is in a recession and the real estate market has taken a lengthy dive. Overall home sale prices in New Jersey have dropped 10-20 percent in the last two years and are expected to drop another 10 percent, in some cases. As well, the construction of new homes in New Jersey has fallen 33 percent since 2006.

Last year when the Builders League of South Jersey launched its Buy New It's Time campaign, the association wanted to differentiate this region from other areas of the country that were suffering greatly in the housing crisis. We wanted the public to understand the real facts about the housing market conditions here; Not Phoenix, Florida, Michigan, Atlanta or Las Vegas.

From a buyer's perspective, if you are looking for a home – whether it is your first home or your next home – the conditions that were presented a year ago, are even better today. Here's why.

• New Jersey has about a year's supply of homes on the market. Home prices tend to drop whenever there is a supply of five months or more.
• As prices have dropped, affordability has improved.
• Just a few years ago the average New Jersey household, earning an annual income of about $60,000, could not afford the median priced existing home in any of the 21 counties. That has changed.
• Nationwide, half of all households in the United States – about 55 million families - can now afford the median-priced new home of $200,000. That's an increase of 17 million households in two years, according to the National Association of Home Builders.
• Mortgage rates remain at historically low levels below 6 percent, which will allow you to buy more house than you could a year ago for about the same monthly mortgage payment.
• Even if your current home is worth less than the last housing market peak, your dream home is probably more affordable too.
• For families that have outgrown their homes, there are a lot more affordable options in both new home construction and existing homes to find your dream home. You have lots more choices and negotiating power.
• You can move into a new home faster as many South Jersey homebuilders have Quick Delivery Options or they can start work right away due to the production slowdown. Take a look at our New Neighborhoods page for a listing of those builders.
• First time homebuyers, who purchase a principal residence before December 1 qualify for an $8,000 federal housing tax credit as part of the American Recovery and Reinvestment Act of 2009. Check out more information at www.federalhousingtaxcredit.com.
• If you have outgrown your home it's probably someone else's ideal starter home. So now is the time to market your home to first-time buyers.
• Realtors throughout South Jersey are reporting a significant increase in perspective buyers, especially first time buyers.
• A ZipRealty.com survey showed 62 percent of first time buyers are more likely to buy this year due to the federal tax credit.

This campaign is all about you. It's about giving you the information you need to make smart decisions on how you live today and where you live tomorrow. If you are considering buying a home in Southern New Jersey, then now is the time to take a look. Every one wants a good deal. This may be just the right time for you.