Market Conditions in 08872>Question Details

Danny, Home Buyer in

Its been almost a year from the time we purchased a townhouse in Sayreville,NJ and Im a bit worried about the

Asked by Danny, Mon Jun 9, 2008

housing market situation since instead of gaining home equity,its like losing it to the current home value.Can anybody tell me what the housing market would look like in 3 to 5 years from now in this neighborhood?

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Prices in Central New Jersey are holding on fairly well, relative to other areas of the country. According to a recent National Association of Realtors report, the year-over-year home prices in this area drop just 0.6% from April 2007 to April 2008. Generally speaking townhomes seem to command a better price and hold their value or increase their value as compared to single family houses. I have heard many predictions as to how the home prices will change in the coming years. Most "experts" predict a decline in home prices through this year and possibly thru 2010 with a slow recovery in the following years. I would say that your home value in 3 to 5 years maybe, at best 3% - 5% greater than today, at worst the same value. If your townhouse is located near public transportation and/or the center of town it could command a greater price; think $4/gallon gas.
0 votes Thank Flag Link Mon Jun 9, 2008
You purchase your home in down market., which should mean you purchase your home not at the hight of market. If you are going to stay in your house for the next 3-5 yrs. your home will apprecate. This market we are in is at the bottom of the cycle. Just keep your home update (looking like new). The homes that are updated are sell now and have mult offers.
0 votes Thank Flag Link Tue Jun 10, 2008
Hi Danny,

Of course we are in a contraction right now and you will get several "falling sky" responses. However, recessions are really just business as usual, sort of like an economic root canal. They are like forest fires - they seem cataclysmic, but they are just a natural and normal part of human economic life. They serve a purpose and are ultimately a good thing. However they do cause disruption and force people to learn new skills and discard old ones that are no longer in demand. And they cause home values to fall.

As long as you are happy in your townhouse, I would forget about the market entirely. Just concentrate on staying employed! The market will come back and your townhouse will increase in value again. Maybe 3 years, maybe 5 years, maybe 10 years. Nobody knows when and nobody can predict.
Web Reference: http://www.marcpaolella.com
0 votes Thank Flag Link Mon Jun 9, 2008
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