It is being reported that NJ January home sales exceeded the 2009′s pace by 21%. This jump continues the streak for the 8th consecutive month that contract-sales have been greater than the same month in the prior year. It also sets the stage for a surge in home sales this spring as the expiration of the home buyer tax credit creeps up on buyers.
According to real estate market trends guru, J. Outteau, he states that “despite the January increase however, home sales were still 7% less than 2 years ago in January 2008 due to the effects of a continuing weak job market.”
Outteau also explains that there are some concerns beginning to emerge as to the sustainability of the housing recovery. This is due to the expiration of the tax credit together with an uncertain job market and the potential for higher mortgage interest rates could lead to an early sales slump in the 2nd half of the year.
For now, we have interest rates hovering around 5%, (and this week they are below 5%), the expanded homebuyer tax credit still in play, and we are seeing the job market letting up a bit. It is a great time to throw your hat into the ring and join the Spring Market.
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