Townhomes in NJ can swing quite wide in price variation. How the market is doing in one end may vary from the other.
While no one can see into the future, most Realtors and mortgage brokers do not see considerable volleys in valuations in the next few years. I do not see an accelerated downward trend for multi years. I also do not think that I will ever see in my liftetime a repeat of rapid appreciation as we experienced in the recent years. Many expect that the housing market will retrun to fundamentals, where it always should have been. Tighter lending guidelines, more stability to come in time, and very slow appreciation in the next 4 years are my best guesses.
and I am glad I did my property value has appreciated 12 ~15% since SEPT 2007 although not as much as I wanted it and yes the property values have gone down from its peak sometime last summer ( I am talking just edison NJ) but they are still holding up from what they were in Aug - Nov 2007.
I GOT MY ANSWER SO PLEASE DONT TELL ME SHOULD I BUY OR NOT NOW...
Victor 14th May 2008 "It's a fantastic time, actually there couldn't be a better time due to us still experiencing some of the lowest interest rates ever, historically speaking and prices which have fallen but that appears to have just about bottomed out" (look who has crystal ball:)
Cheng 14th May 2008 "Why it is good time to buy? They market says it is a good time to buy" "So, again, it is market think it is great time to buy, it is objective data showing that, not subject guess."
I see your post is from August 2007. You should have listened to your friends. You should have waited to buy. I guess you know that now. You're probably upside down on your loan, but maybe you can qualify for a loan modification. Good Luck
The most important is that it is right next to Middlesex County College where Middlesex Academy of Science based, this new high school won #1 in NJ Science League Physics competition over hundreds of all other high school in 2007.
Besides, Edison is top 3 safest town in NJ, and most populated Indian township in the US, that is to say you shall get many more people moving in and housing will be getting crowd each year.
I know people renting out their 3br townhouse at Victoria Park for $2500+ http://victoriaparkatedison.blogspot.com/ If yours is new, you should be able to get more if you choose to move up to bigger home and just rent it.
I got lots of info about townhouse and condo market in the area, and when disclose some, people just decided to buy. e.g. I went to Rivendel yahoo group to join the debate of "buy or not to buy", and I was thrown with lots of news links trying to slash the price, but I countered by first hand real time sold info at Edison; I won the debate, and 18 members out of 44 said they were going to buy than rent.
I think your "friends" who scared you were because they watch too much TV and got scared by those who know nothing about Edison, including Greenspan.
Do you know how many Chinese coming to Edison want to buy? Why there are FOUR Chinese schools in Edison. If you know Chinese are the people who often BUY AND HOLD, you know Edison is a place very different than other place, may be another San Francisco.
San Francisco is #1 expensive in the US because so many Chinese families there just BUY AND HOLD. Another closer place is Highland Park near Edison, where most Jewish families also buy and hold, so Highland Park kind of expensive.
Late 2006, Lidia from Remax told me she got a 3br townhouse at Village Pointe http://villagepointeatedison.blogspot.com/ expiring could not sell, and I advised she hold consecutive open house in Thanksgiving time, and she sold it at 4th open house. Before hers sold, she sold other 8 units in the community, now it is almost sold out after dozens sold in 2007.
Why is that? because there are many BUYERS like you, but they are scared by the media, as soon as one went out to buy, his friends will all went out to buy. Also, many first time buyers renting in apartment do not know the area well to make quick decision. Many work long hours during weekdays in Wall St.
For example, one disagreed with me in 2006 saying his friend has unit at Traditions South Plainfield could not sell. So I just went check it out, I talked to dozens of residents to identify the prospective buyers come from Edison/Blueberry Village and Durham Woods, and get 1,000 message out to introduce Traditions at South Plainfield. dozens units sold in 2007, now almost sold out.
So, there are great demand in Edison area, people either buy or rent, once too many people rent, the apartment will be rented out, and rent will jump, so some matured tenants will buy. It is demand and supply.
So far, I have not seen any condo/townhouse can not sell, especially new ones if the owner get Jose 732 979-9100 to distribute 1,000 flyers to prospective buyer communities in Edison.
Edison has a great younger community , good schools and easy commute into Manhattan. A lot of "city people" move to edison for the commute. I bet to say you got a good buy and if you stay a few years, you should be fine. Real estate has always been the best investment. Period. If you got it at a good price and maintain the property, take the upgrades.. granite , tiles and such.. selling in the future should be just fine.
Nobody can ntell you what will be.. but again, real estate has always been the best investment for your dollar.
Will the market take that big upward swing again.. I think so.
Good for you! Well, I posted in Nov. of 2008 after your decision (unkown to me) and it appears that I may have been pretty darn close in my analysis. I want to believe that this analysis is/was more than "even a blind squirrel finds a nut every now and then" or "even a broken clock is right twice a day."
I really study this industry and am glad to see that the study and thought process holds water.
Fine... But don't rain on other potential home owners and dreams to grow a family in a place they can call home, pay off, hand down to their kids etc. get a life hahaha...
None on my statements come close to predicting the future like you, I say what I think the current market situation is like. So no crystal ball like you always seem to have sak hahaha...
Now is the perfect time to buy a home for a few reasons, especially if you are a first-time homebuyer.
1. Home values down. Since the beginning of the housing crisis, home values have declined significantly. With the decline in home values, coupled with the foreclosure rate nationwide, home prices are extremely low and very affordable. However, recent reports indicate home prices have increased this month for the first time in 3 years.
2. Current mortgage rates are still historically low. Although they have increase back into the 5% range, they are beginning to settle again. Even in the 5% range, the rates are still lower than just a year ago.
3. The federal government's first-time homebuyer tax credit of $8,000 expires on November 30, 2009. This credit is as good as having cash in hand. Unlike the $7,500 tax credit the government provided last year, this year's version does not have to be repaid.
Many believe we've seen the bottom of the housing market and home prices are going to start appreciating again shortly. Again, this month has seen home prices increase for the first time in 3 years.
I hope this information helps. Best of luck!
Total Mortgage Services
Some people are not that lucky, even though they might have initially planned to stay in the house for many years, they have to sell earlier due to circumstances beyond their control. if they have bought at right price, they can always sell but if they overpaid and are upside down, hard luck :(
So once again Sak is a fortune teller, in 22 months 4 days and 3 hours maybe will be time MAYBE!!! ;-D
I have a client looking to buy now and he told me he's looking for a home to buy in a nice area, doesn't have to be perfect or big, just a big lot in an area with decent school system, he'll enlarge the home on his own.
We just missed out on a property he really loved and he was willing to pay more than the asking price for it to boot. He also told me he's not looking for an investment property, just a place where his family can live and grow. He said, I'm looking for a place I can stay for a long time I'm not looking to "flip" the house, I'm planning on living in it and I know that you won't lose any money unless you sell and you sell when the values are lower. I'm not looking to do that so I'm not worried about that.
I guess people like this, which are called normal average home owners are considered misguided idiots by sak huh? I have yet to ever hear a positive word from sak about owning real estate or shopping for it in his history of being a member of this site.
Anyone looking to buy needs to look at the pluses and minuses that are most important to you, guys like sak don't think of homes as places to live but rather strictly as monetary investments. You'll need to decide for yourself what is most important to you. Family investment or monetary investment, not saying that real estate values aren't low now and won't rise from this point eventually if not this month or next year but it will, how long do you want to wait?
I used that saying because they hate it so much ;-D~ to heck with them, any answer from a realtor will never be the right answer.
Here is a pretty good explanation in video form from Lannar: http://tinyurl.com/whybuynow
Yeah I'm busting chops but some of these characters need a taste of their own medicine.
Well I'm not a professional either and have no vested interest in steering you the wrong way based on commission. I find the attacks by Scott and other Trolls to be amusing at best. They should find a new hobby.
In the long run, Edison does well. It has very good commuting to NYC. If your view is long term (7-10 years) then it's tough to go wrong. We've already taken most of our beating in this market.
But ... new construction has high taxes, and the town home can also have high association fees. Bear in mind that association fees can really add up. They might be reasonable - at $50/month or hideously high at $250/month. Every $50 per month is about the same as $10,000 on a 30 year mortgage. So that reasonable looking townhouse can actually be a lot more than it appears. The best values in Edison - in my opinion - are a single family home from a distressed seller (not too hard to find).
Are you already under contract (it's hard to tell from your question) or can you just walk away? If you are not committed then consider VERY carefully the best thing for you and your family what the best thing is for you over the next 7-10 years.
Also keep in mind that NJ state income tax is VERY high. You likely pay 5.25% or 6.37% per year. I'm finally leaving NJ after many years for PA - and a 3.03 state income tax. If you can work in NJ and live in PA you'll still only pay PA state tax. Loads of people do that. What are your commuting needs?
Real estate is local. There are areas that have seen major corrections and areas that have not. According to many that "trend" the market from a higher elevation the areas in NJ that "may" become more attractive in the years to come are those that are more suburban/urban versus rural. A recent report that I studied used the term "walk-ability index". Meaning the ability to get to a restaurant or mass transit or food store without putting a lot of gas in a car.
5-15 years ago there was a desire to move more rural. According to this study that trend will reverse itself as the next generation buyer looks to purchase. So, Edison may very well be one of those areas that see pricing stabilization and growth first when the market rebounds (and it will).
If you are looking for your primary residence, it's a great time to buy. You have to live somewhere and it may very well beat renting based upon your situation. Stay focused on your home versus market timing.
If you are an investor, purchasing an investment property you need to look at rental turnover, which I don't see mentioned so I guess your home buying. In which case don't stress about market timing concentrate on making a new house a home.
New Hope/Lambertville Regional Center
I have gone through many posts of yours and Dr Cheng's and too me it looks like you have some interest in real estate market. Most of your posts looks like advertisement to me. I am not sure if you are same "Mr Cheng" who used to send tons of similar mails in yahoo groups created by Edison/bluberry village, Edison Hollow south and other nearby community residents. Most of the those emails looked like spam to me and I had to unregister myself from those group.
Why it is good time to buy? They market says it is a good time to buy. e.g. Westgate at Edison just have 5 more units sold under attorney review as you can click to see http://msx.mlxchange.com/Pub/EmailView.asp?r=335238131&s and for past 12 months around 50 units sold and closed. So, it is the market saying it is a good time to buy.
Also, if you shop around on CD rates like Danny who found the CD rates in Bank of American is only 1% to 2%, similar to JP Morgan Chase ...etc. so you can understand why he just bought condos in Edison for investment in cash! He or another other savvy investors would sure to be glad that you do not buy but stay as his long term tenant. Why not? $1,400 a month for 1br 1ba condo at Edison Hollow South http://raspberryct.blogspot.com/ that is currently sold out!
By the way, even it is good time to buy at Edison, it does not mean you can always find what you want. Why? Other than Edison Hollow South, Edison Manor is also sold out too, and many condo/townhouses communities in Greater Edison area also close to be sold out. So, again, it is market think it is great time to buy, it is objective data showing that, not subject guess.
There are many deals to be had but those are from Foreclosure and Pre-Foreclosure / Short Sale properties however they do not dictate market value, they artificially lower the value of homes via the need to sell and sell NOW!
Low Prices & Low Rates = Good Time To Buy / Buyers Market
We have been experiencing this for some time now however for some reason there were many more buyers when the prices where higher than ever!
(Reason: It was way too easy to get a home loan even if you had little to NO money to buy!!! Everyone dreams of home ownership and if you dangle that prize in front of anyone, they will leap for it.)
High Prices & High Demand & Low Rates = Sellers Market
Time to form your own conclusion....
Good Luck in your home search.