New Home Forecast for Mercer County NJ

According to economists speaking at the International Builders' Show in Las Vegas this past  week, the end of the economic recession, along with the continuation of low mortgage interest rates and stabilizing housing prices, will result in growth in the nation's housing market this year.  But improvements will come slowly as high unemployment levels will discourage consumers and push home foreclosures higher.

"The stage is set for the consumer to return," said David Crowe, chief economist of the National Association of Home Builders (NAHB), and because of the slow pace of the recovery home builders will profit from generally low inflation in building materials prices and wages.  Crowe warned that this remains "a cautionary period" for housing, largely because of the discouraging level of joblessness.  The inability of builders to obtain financing for new residential development is also "a significant retardant to recovery," Crowe said.

NAHB is forecasting 697,000 total housing starts in 2010, up 25.6 percent from an estimated 555,000 units last year. However, this year's recovery will occur entirely in the single-family sector, where starts are forecast to rise 37.7 percent from 443,000 last year to 610,000, he said. Suffering from an acute shortage of available financing, multifamily starts are expected to lose further ground in 2010, slumping to 87,000 units, down 22.3 percent from last year's 112,000 level. In 2008, 285,000 multifamily units were started, which is near the level that is needed to keep the supply in balance with demand.

I work with builders here in Mercer County and the surrounding areas, and can help you into a new home.  Visit my Dogwood Meadows site for ideas on models and amenities in one new home development in Hamilton.

To use your 1st Time Buyer or Trade Up tax credits, you need to start looking now and decide soon.   Contact me for references to lenders who can help you finance a new home and for the latest on builders and their products here in Mercer County.

Joe Giancarli
Sales Associate
609-658-2612
jgiancarli@remax.net

(resource:  RealEstate Channel)