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chrysafis, Other/Just Looking in

I like Princeton Walk townhomes in South Brunswick. Will the prices go down this year or early next. No hurry

Asked by chrysafis, Tue Jan 15, 2008

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Hi
Prices in this area have come down about 8-12% since last year.....depending on the home's age, condition & interior appointments. While May has been a bit quiet.......June is shaping up to be busy.......And we ,( the greater princeton area realtors) are expecting the 2nd half of the year to pick up as the demand outpaces the inventory supply.

And......this is easily verifiable if you see interest rate trends since the beginning of the year to now..................Rates are inching up slowly & according to NAR economists , the Fed is expected to raise rates later in the year to ease inflationary trends.
Rate cuts were to rein in the lack of consumer confidence, but employment data, rising food & energy prices has not helped.
What a buyer needs to keep more of an eye on is what impact does the interest rate have on their monthly payments.
If the % slide of a home purchase price ends up saving you less than a % increase in interest rate, then that should concern you more, as it is possible that you may be priced out , or not be within your comfort zone for affordability ........or worse,.........by next year, if stricter lending standards are in effect, you may have to put a heftier down payment / have a better credit score / have a higher income........or all 3 to qualify for a loan .
I keep telling my buyers.............the financing needs to come first.............So
Work your numbers & then ask yourself this question.

Should I buy now or will I be able to next year?
Web Reference: http://www.SoldByShalu.com
0 votes Thank Flag Link Tue May 27, 2008
I would suggest that you look more long term than 1-2 years unless of course you're thinking that you will be moving again very soon. Mortgage rates have inched upward and the projections for mortgage rates are that they will continue to inch upward throughout the year. This reduces your buying power. This reduction in buying power may outweigh any possible, potential price correction or minimize it completely. Most analysists feel that we are close to the bottom of this correction phase. If you are looking at your next home solely as a short term financial investment versus a lifestyle investment you may want to follow the trends used by most Wall Street investment firms who buy through the bottom and sell through the highs.
Yes, as agents we only get paid when you close on a property, but I firmly believe that this is a buying opportunity that comes along only a few times in ones lifespan. As the prior poster mentioned, you really need to look at what's happening in the financial community. The criteria for mortgage approvals are becoming more strict. Credit scores play a far more important role than in past years, Mortgage Plans have higher qualifications.
0 votes Thank Flag Link Wed Jun 11, 2008
HI, well thats a tricky question ... but the forecasts are out there that the mortgage rates will continue to drop making this an even better time to buy! As for your question on pricing it will really be determined on how the banking side does. I would think we may still see a small dip.
0 votes Thank Flag Link Tue Jan 15, 2008
You need to find a qualified Real Estate professional in that area to help you. You can also do research on your own, but a real estate agent will have access to all the recent sales activity in the area to help you formulate your plan of action.
Good Luck!
Sharon
0 votes Thank Flag Link Tue Jan 15, 2008
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