Thursday, March 24, 2011

Are You a Qualified Buyer for a Hamilton, NJ Home Still Waiting to Jump In?

As reported by, the average American homebuyer is still very cautious, with good reasons.

1.  Attitude - homeownership is no longer viewed as an investment with a guaranteed return.  Many costs are rising more than incomes, so for younger buyers, it seems challenging that they can afford a mortgage plus health care and education.

2.  Savings - because real estate is not a liquid asset, in the sense that it can be converted readily to cash, many buyers without savings don't want to tie up their extra cash in real estate.

3.  Confidence - uncertainty about the economy, the health care system, the ability of the government to tackle major problems, all weigh on buyer confidence in the stability of a real estate investment. writes, "The Joint Center for Housing Studies of Harvard University reports that real median household incomes across all age groups under 55 have not increased since 2000. It’s been posited that this will be the first decade in 40 years where real median household incomes will end lower than where they started. Simply, many Americans just don’t feel comfortable about their financial futures and are choosing to hold off on homeownership until they feel more secure."

4.  Credit - lenders are still very cautious and credit remains tight for all but buyers with high FICO scores.

5.  Timing - no one, even Realtors, know if the New Jersey real estate market, or in the rest of the country, has hit bottom. continues, "Home values, saysYale Economist, Robert Shiller, are expected to continue falling in the short term by as much as 15-25% more. With the job market still on very rocky ground, the foreclosure crisis continuing to unfold, and the homebuyer tax credit gone, it’s anticipated that demand for middle market homes will remain relatively weak."

6.  Mobility - even Seniors now realize they may have to move to work, and certainly younger generations plan on several major moves and careers during their lifetimes.  So owning a home in one location becomes problematic, unless the employer offers a relocation package.

Sounds pretty gloomy doesn't it, if you want to buy a home in Hamilton, NJ?  But let's talk about your options.  There are great deals available, and many sellers who want and need badly to sell.  So call or email and let's see if together we can structure a sensible real estate investment for you in today's market.

Joe Giancarli, SA
Real Estate Advisor
Short Sale Specialist

Find homes for sale using my new mobile app. Just text JOEG to 87778 and you will be sent download instructions. Once installed on your device, you will be able to do searches and see complete listing details including photos and prices. If your device is GPS enabled you will also see the listings on a map. (Data rates may apply.)

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