I am feeling optimistic about the New Jersey real estate market in 2012. And I think you should too. My information gathering from trusted real estate magazines, blogs and analysts generally points up. And it is not just because we are all sick of the naysaying–there is some irrefutable evidence.
For the last 6 months in a row home sales increased an average of 6% per month in 2011. If this is indeed a real trend and continues into the first half of 2012, it will have quite an effect on inventory, prices and overall market stabilization and maybe, just maybe a bit of growth too.
More sales = less inventory = prices start to stabilize. Today, President Obama said he is considering a proposal for the government to buy up more foreclosures. This would be a rapid way to stabilize the market and perhaps not only see an increase in sales, but also an increase in prices.
Are you ready for more good news? Mortgage rates continue to be historically low. Buying a house has never been more affordable and there is huge pent up buyer demand. Together affordability + demand = a healthy market.
Do you agree with my optimism? If not- why not?