Home Buying in Bayonne>Question Details

Jforce2, Home Buyer in Bayonne, NJ

I will not be ready to buy for another year. Will I lose out on the low home prices and interest?

Asked by Jforce2, Bayonne, NJ Thu Apr 28, 2011

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Hi Jforce2,

I think the previous answers are logical. In fact, the Case–Shiller Home Price Indices reports that in the New York Area which includes northern New Jersey home prices in some areas might go down roughly 1-1.5%. Also, I agree there is a good chance that over the next 12 months interest rates will go up.

However, buying a home to live in is partly a decision based on improving your quality of life. Therefore, don't put undo stress on yourself. Take the next 12 months to plan Talk to a lender of your choice and understand clearly what you should be doing in the next 12 months to succeed at your goal of home ownership.

Since I specialize in Hudson County, Please feel free to save my contact information and reach out to me anytime with your real-estate questions.

All the Best,
Nader Rezai, Realtor
Weichert Realtors
c. 201-736-5713
Web Reference: http://www.hudsongold.com
0 votes Thank Flag Link Thu Apr 28, 2011
I would never rush into anything that you can not afford. I believe interest rates and home prices will not climb this year or next. Save your money and buy when you are ready.
Web Reference: http://www.chintzteam.com
2 votes Thank Flag Link Thu Apr 28, 2011
You should never buy anything, out of fear! Buying a home, is much like preparing for life. You never know what you might face, so you prepare as well as possible, and then make a decision based on the knowledge you have learned. Whether you win or lose on your purchase, will depend hugely on you, and whether or not you are prepared to buy. A home, just like a piece of clothing, should be the right fit. Prepare, your finances, make a budget for yourself including the additional expenses that come with home ownership, and then decide when the time is right for you. Don't buy, because it looks good...Buy, because it is a good decision, and the right decision for you. Whether or not a property is a good investment for you, is for you to decide. Every market has good deals somewhere, of some nature, you just need to be informed and make an informed decision. Never buy out of fear, and learn to be patient, until the time is right.
2 votes Thank Flag Link Thu Apr 28, 2011
We're in a major economic recovery, therefore I don't see interest rates or home prices shooting up in the next year. I wouldn't be hasty in your decision to buy, but rather wait until you are absolutely ready. If you plan to buy a home and live in it long term, then waiting a year won't make much of a difference. It's still a good investment because you'll get to use it, make memories, have ownership, etc.
1 vote Thank Flag Link Thu Apr 28, 2011
We actually touched on this in a meeting this morning....interest rates should remain low for atleast the next year. The market is quite saturated right now so waiting another year shouldn't affect your purchasability, but at the same time, you never know these days. It will take quite a while to get past the economic situation the housing market went through, so you should be fine.
1 vote Thank Flag Link Thu Apr 28, 2011
When you are ready to buy is enitrely based on your circumstances. If there are variables within your control which may change your readiness date, those variables have to be weighed with the risk/reward considerations of your particular situation. Your financial professional can help you with those considerations. Home prices are not expected to rise significantly, if at all this next year. Interest rates are also not expected to rise this next year. This is largely because there hasn't been a signficant improvement in housing sales, employment or the economy overall. Interest rates need to remain low to help stimulate the economy. Since a rise in home prices and interest rates would be more likely in a robust economy combined with a fear of rising inflation, I don't foresee any significant upward changes for you to be concerned about. Situations may vary by geographic/economic area.
1 vote Thank Flag Link Thu Apr 28, 2011
Wait a few years, what's the hurry? Are you in a hurry to get 30 years of debt? Prices are declining. If interest rates go up, prices decline more. Take your time, save your money for a downpayment. Good Luck
1 vote Thank Flag Link Thu Apr 28, 2011
I agree with the answers below about home prices staying pretty stable over the next year. I also agree with them that the thing to worry about would be interest rates. From all of the sources that I follow, I think interest rates will be going up faster than what these gentlemen said. I have heard that by the end of 2011, interest rates will be in the mid 5%s, and by the end of 2012, you will be pushing 5.5 or even 6%.

What difference does this make? If nothing ever changed except for the interest rate, on a $200,000 loan you would be paying about $130 more per month at 6% than you would at 5%. While this doesn't sound like much, it translates to nearly $8000 over 5 years that goes strictly towards INTEREST and not towards the principal of the residence.

If you have the ability, I would look at buying now. Look at down payment assistance programs, look at various financing options, etc. With FHA, you can be gifted a down payment. As long as your credit and income support it, I would buy as soon as possible.

Of course, if your credit and income don't support it, don't get into something that you cannot afford. That is what got us into this economy in the first place. Best of luck to you!

It's more than real estate. It's RAYL-Estate!

Brian Rayl, REALTOR®, e-PRO, SFR
Keller Williams Elite Dallas Park Cities
972-949-4222
Brian@Rayl-Estate.com
http://BrianRayl.com
Web Reference: http://brianrayl.com
1 vote Thank Flag Link Thu Apr 28, 2011
While my crystal ball's batteries have gone bad since 2000 I can say the prices will not be shooting up anytime soon. Interest rates will likely be going up in the near future, but only by 1/2 percent or 3/4 percent since they usually raise them very slowly. Who knows, you could do well waiting, you just never know what the future will bring.
1 vote Thank Flag Link Thu Apr 28, 2011
Home prices will not go up over the next year. They will remain stable. The interest rates may go higher; they have been slowly rising since it hit all time low.
If you need further info about the Bayonne market, feel free to contact me. I will be more than happy to assist.
Issa Musharbash
Century 21 Innovative Realty
201-401-6567
1 vote Thank Flag Link Thu Apr 28, 2011
I would tend to disagree with Brian, interest rates to not directly cause prices to go up or down, they simply make home ownership more of less affordable. Prices are likely to stay here for quite a while maybe go a bit lower. Rates? No one really knows but you will need to keep an eye on the industry forecasters as to why a rate increase or decrease will help the economy. If anyone tells you what will happen 9 mos. to 1 year from now I would be very skeptical.
0 votes Thank Flag Link Sat Apr 30, 2011
NonRealtor said: "If interest rates go up, prices go down further"

Lets say that right now, you are considering a 200k house at a 5% interest rate. Lets say you wait a year, and the price drops 5% (10k) down to 190k, but interest rates go up to 6%. If you wait and get the cheaper house, you will pay 4k MORE over the next 5 years by buying the cheaper house at 6% than you would the more expensive house at 5%.

I agree buying a home has to be the right decision for the HOME BUYER, but once the decision has been made, there are reasons to speed along the process. This is one of them. So many financial analysts are talking about hyperinflation. Interest rates will be going up. I don't think there is an analyst out there that will say this won't happen over the next year. When the Fed stops QE2, watch out (currently scheduled to stop in July I believe).

It's more than real estate. It's RAYL-Estate!

Brian Rayl, REALTOR®, e-PRO, SFR
Keller Williams Elite Dallas Park Cities
972-949-4222
Brian@Rayl-Estate.com
http://BrianRayl.com
Web Reference: http://brianrayl.com
0 votes Thank Flag Link Sat Apr 30, 2011
I can't tell how much interest you'll have in a year but Homes prices may go up
0 votes Thank Flag Link Thu Apr 28, 2011
There will be another million foreclosures coming on the market in 2011 according to the SC Western Upstate Board of Realtors. Until all these foreclosures are sold, prices are likely to stay low. This is great news for future and present buyers.
0 votes Thank Flag Link Thu Apr 28, 2011
Mr Jforce2,

if the prices and / or interests will go up as some people are thinking of... yes you will loose but no one can preview what will happen in one year!
0 votes Thank Flag Link Thu Apr 28, 2011
Though no one has a crystal ball, all indicators point to a very long and slow recovery of the housing market. Difficulty in obtaining mortgages with tougher restrictions are certainly a factor. Interest rates? Still historically low.
0 votes Thank Flag Link Thu Apr 28, 2011
J, the current housing market has only recovered a little over the last 12 months. It really depends on the area, the city and the state's employment. Interest rates are not controled by Realtors or real estate companies. That is all part of a huge picture ruled by our government. You are most likely too young to remember when interest rates were 12 to 15 percent. The current low interest rates are wonderful, however none of us can be sure they will stick around for another year. If you are asking because you have interest in purchasing a house, condo or other form of real estate. Remember a low priced home is your gain and the sellers' loss. But, I tell the sellers of today to remember they will be purchasing a home someone else feels they are selling for less that their homes worth. Home ownership is the American dream. Move forward now if you can. Judi
0 votes Thank Flag Link Thu Apr 28, 2011
No one has a crystal ball...one that actually works anyway! It is forecasted by some economists that interest rates will rise and then other will say the opposite. Without knowing what the economy will be doing a year from now, it would be imposible to say for certian. I agree with previous posts, don't buy until you are ready or let others use fear tactics on you. Don't buy until it is the right time for you and you have all of your ducks in a row. Buying out of fear or being ill-prepared can set you up for disaster. Brokers (real estate or mortgage) that pressure you are more intertested in making the immediate commission for themselves rather than helping a satisfied client reach their goals. Work with professionals that do not presure you.
0 votes Thank Flag Link Thu Apr 28, 2011
This is the best time of the year to buy and take adv of the new incentives from first time home buyer using the FHA low score of 600.
0 votes Thank Flag Link Thu Apr 28, 2011
Don't concern yourself about something you cannot change. If we had a crystal ball, we would all be VERY rich. the rates and housing may be lower or the same within a year!!
Good Luck!
0 votes Thank Flag Link Thu Apr 28, 2011
Sometimes it takes a year or so before a buyer finds the home of their dreams. If you would like to start looking now, I will be more than willing to help you. I can also guide you to a mortgage person or persons who will be willing to work with you. Please contact me if I can be of any further service. Thank you. Patricia 201-452-7699
0 votes Thank Flag Link Thu Apr 28, 2011
I believe the home prices will stay in the same price range depending on what you are looking for. The mortgage rates shold start to go up. It is a buyers market right now. I grew up in Bayonne and I specialize in the area. Please call or e-mail me if you need any help. 732-757-7141 michael@knechtproperties.com.
0 votes Thank Flag Link Thu Apr 28, 2011
Until next year comes around all we can do is guess.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Thu Apr 28, 2011
personally I think you are in good shape here. The main thing is the interest rates which one cannot predict but in my opinion all should be well for you to purchase in 2012. Best of Luck
0 votes Thank Flag Link Thu Apr 28, 2011
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