Home Buying in Clifton>Question Details

S.o., Home Buyer in North Trenton, Trenton...

clifton nj gated communities...when will price go down?

Asked by S.o., North Trenton, Trenton, NJ Sun Dec 21, 2008

im looking at gated community townhomes/condos in clifton nj...most are selling lower than what the current owners paid...does anyone believe that the prices will continue to decline in 2009 or go back up

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The information we are hearing is that from a national perspective prices will continue to slip another 10% during 2009. Of course, this depends on the area and the price declines that have already occurred. The inventory of available homes supports this theory with the number of homes on the market reaching 2M.

This does not mean you should not consider you buying options at this time. there are many, many excellent buying opportunities. Our advice to this question is for buyers to remain active in the buyer's market, colllecting information, and looking for the perfect opportunity. The perfect home, in the ideal community, and offered at a price you can't afford to pass up. The real challenge is identifying the truly motivated seller. Many of today's buyers are finding satisfying opportunities with "bank owned" property.

Our advice to you is to remain in the hunt, continuing to collect information of possible options and being prepared to move quickly on the right opportunity. The best deals are currently going to the people that are in the right place at the right time and are ready to take action. Be sure you have a letter of pre-approval for financing and have the support of a real estate professional.

Happy Holidays
1 vote Thank Flag Link Wed Dec 24, 2008
I agree with the guidance of the first post by Bill Eckler but I just thought I'd weigh in with some more information. the 1st time buyer credit is available if you close on or before July 1, 2009 and there are certain phase outs for income levels and purchase price. If you you go with an FHA loan you will have mortgage insurance as indicated but under FHA it is there for life. You cannot petition to have it removed, it is always part of the mortgage. I also agree with Peter that you should ensure your credit has no issues. You should counsel with a mortgage planner today this way if there is an issue he can advise how to rectify it before you actually need to apply for a mortgage. You appear to be in the cats seat as a buyer with a down payment, assumably good credit and no house to sell. If you are patient and cautious you will find a very nice deal. Happy Holidays.
0 votes Thank Flag Link Wed Dec 24, 2008
first thing to do is make sure your credit is A1. If it is you are going to get some pretty good deals as a first time buyer FHA is offering 3 1/2% downpayments with 5 1/2% interest on a 30 yr fixed with evey likelhood rates will go even lower. You can get the $7500 tax credit as a first time buyer and there is a chance that that would be raised.
Yes you have to pay PMI with less than 20% down but in my mind its a bit of a trade off assuming prices will eventually recover and once that happens then interest rates would probably rise as well. When that will happen nobody knows.
And also you stop paying PMI once the value of your home is at least 20% above what is owed ( either by paying down the mortgage or by getting a market analysis from a realtor showing the current value)
The only thing you must not do is buy anything with the assumption that you will make a profit on a resale.
I like Cambridge Heights walk to the city bus and the train or for that matter a few blocks from Rte 3.
0 votes Thank Flag Link Wed Dec 24, 2008
Thanks for your reply Mr. Rogers...that was one of the communities I was looking at...I do not have a 20% downpayment yet but will be there by summer of 2009...do you think I should buy now with the low interest rates and tax incentives?... and also would I have to pay pmi without 20% down...I also am a first time homebuyer...thanks for your help!
0 votes Thank Flag Link Tue Dec 23, 2008
i assume you mean Cambridge Crossings which was opened at the height of the boom in prices, and therefore most of the current sales are at or below what was paid for them.
As for where the market is going it would be an extremely brave person who would ofrecast the trend in the coming year. There are a number of factors against a recovery but assuming interest rates will go even lower and assuming such things as low downpayments will encourage first time buyers (along with the tax credit and any other incentives that come along) we should see a pickup in demand in the lower end of the market.
Going against this is the very large inventory of properties for sale and this will have to be reduced before there is any sign of prices going back up.
0 votes Thank Flag Link Mon Dec 22, 2008
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