Is Now a Good Time to Buy a House in New Jersey, Versus 2019?
The New Jersey real estate market has undergone many changes over the last few years, and this has many would-be home buyers asking the same questions: Is now a good time to buy a home in New Jersey? From a cost perspective, would it be better to buy in 2018 or wait until 2019?
Here’s an updated look at real estate and economic trends in the state, to help you answer these important questions.
New Jersey House Values Expected to Rise
Statewide, home prices in New Jersey have risen over the last few years. They are expected to continue rising, in most parts of the state, over the coming months. These trends are important to all home buyers, whether you end up buying a house in 2018 or 2019.
The research team at Zillow, for example, recently predicted that the median home value for New Jersey would rise by around 2.1% over the next 12 months. Granted, this is just one forecast. But the general consensus among economists and housing analysts appears to be that home prices in the state will likely continue to rise.
So, purely from a cost perspective, now might be a very good time to buy a house in New Jersey. Buyers who postpone their purchases until later in 2018, or 2019, could encounter higher housing costs.
Mortgage Rates Level Off in Spring
Mortgage rates have settled down a bit, following a steady upward climb during the first two months of the year. This is another trend that could affect many home buyers across the state, since most use mortgage financing to facilitate their purchases.
According to the weekly survey conducted by Freddie Mac, the average rate for a 30-year fixed mortgage loan was 3.95% during the first week of 2018. Over the following weeks, however, that average would rise steadily to land at 4.46% by the week of March 8. This caught the attention of home buyers, mortgage shoppers, and even industry professionals.
The chart below shows average 30-year mortgage rates over the last year or so.
Thankfully, mortgage rates have eased since the relative spike that occurred at the start of the year. They now appear to be leveling off a bit, as we head into the spring of 2018. Granted, rates can vary from one borrower to the next based on a number of variables. And they change constantly. Still, it’s good to see them level off after a steady climb.
Buying a Home in NJ Now Versus 2019
The question is: How will all of this affect those who buy a home in New Jersey now, versus the end of the year? Will interest rates and home prices continue to climb through the end of this year, and into 2019?
While no one can predict economic trends with complete accuracy, there is some consensus among analysts that both rates and house values will be higher next year than they are right now.
We talked about the home-price predictions already. On the mortgage side, economists from both the Mortgage Bankers Association and Freddie Mac have predicted a gradual rise in rates between now (spring 2018) and the end of this year.
If these predictions turn out to be accurate, New Jersey home buyers who postpone their purchases would essentially have less buying power.
Send your questions: Are you planning to buy a house or condo in NJ? Please contact us with your mortgage-related questions, or to receive a rate quote.