Attention Post Tax Credit Hoboken Buyers: The greatest time to buy a home in the history of mankind is now.

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Attention Post Tax Credit Hoboken Buyers: The greatest time to buy a home in the history of mankind is now.


I am not given to hyperbole. Okay I am but maybe not so much in this case. There are several factors coming together right now that have created a perfect storm for buyers in Hoboken’s real estate market. Let’s look at the contributing facts.

1) Inventory is up. The guts if the Hoboken real estate market are condos priced between $350,000 and $550,000. Coincidently, this range is the upper range of buyers who are under the income limit for the homebuyer tax credit but can still qualify for a mortgage. Interestingly, at the higher end of this range buyers would like to get the credit but are not rushing into a property for what is essentially a two percent discount. Thus despite the sharp rise in the number of contracts in March and April , there was an even greater number of condos coming onto the market. The total number of available condos rose over 25% from January 15th to April 15th.

What happened? Sellers decided to get in the game. There were a lot of buyers out there with $8000 to spend. So sellers got off of the sidelines. An important item to remember is emotion. Some of these sellers have checked out. They are already planning their next move. They probably went to Ridgewood or Maplewood or Westfield to check out the town. They’ve done some online searching and maybe attended an open house. These sellers fall in the category of don’t have to move but now really, really want to move. This checked out seller is a motivated seller. Motivated does not mean going to give the house away at a fire sale price. It means there is likely another 3-5% to be negotiated from pre tax credit pricing.

To recap: Inventory is up. Buyers have choice. There are good deals.

2) Low interest rates. You’ve heard it all before. The interest rates are low. They’ve been low for a long time and from every expert you listen to they will rise. Next week, next month, next quarter….definitely by next year. No big deal? A little one percent pop in rates is worse than a 10% price increase. Do the math. Your cost of ownership goes up with every tick in your mortgage. Locked in for the life if your loan. The old adage buy low, sell high. It’s low.
To recap: Only one way for interest rates to go.

3) This is not the depression. Doesn’t it seem like whenever homes are on sale, you have no money. If I had a nickel for every old timer that said “I could have bought that place for $10,000 in 1970 and it’s worth $2,000,000 today”. When the market is depressed most people are depressed to. Economy in the tank and your worried about your job = you don’t buy. Need to hoard cash because times could get tough. Well seven times more millionaires are made in tough economic times than in good ones. There’s more upside when prices are down. And if you’ve seen those bonuses coming out of Wall Street, 1929 is not just around the corner.

4 & 5) Summer time and the money is easy. Check the calendar. Check the weather. Spring has sprung. April showers almost over. May flowers pushing on through. Before you’ve has a chance to analyze your fantasy baseball team, it’s flag day and the beginning of summer. Sellers know this. That ticking sound is the clock in the buyer’s head that sends him to the beach and away from thoughts about buying homes. Sellers who don’t want to risk waiting for a fall market to materialize should be willing to bargain.

Did anyone notice that the credit crunch is over for buyers with good credit. HFA loans, 10% down loans and even 5% down loans are all the rage. It’s good to be able to shop with confidence.

6) Buyers are resting. The race for the $8000 is over. Some buyers will invariably take a break until fall when they can be part of a crowd again. The beach is nice in the summer. Gas grills go on sale in the fall. Why? maybe Home Depot has learned that no one needs a grill to cook Thanksgiving turkey and it costs them a whole lot more to store them than to sell them and bring in the snow shovels.

So if you’re a would be condo buyer in the Hoboken real estate market, are you excited yet? I am. I am excited because I know that I will be able to find you a home for a good price and you’ll be able to get a mortgage. Moreover, there won’t be a lot of pesky competition that fill sellers heads with price wars and above asking offers.

Yes. Summertime and the living is easy.

Buyers who disregard this analysis as the ramblings of a realtor suffering from post tax credit anxiety, do so at their own peril.

A little info to help buyers and sellers in a post tax credit world….

Q1, 2010 Hoboken Real Estate Report This report will give you a breakdown of the one the two and the three bedroom condo markets and a list of every condo sold in Q1.

Additionally, the latest version of my Hoboken Real Estate Trend Report is available

Also, I encourage you to sign up for my Hoboken Market Snapshot Report which sends a free customized report of a market segment. (i.e. one bedroom, one bath) on a biweekly or monthly basis. It’s great for sellers and buyers alike.

Don’t forget to check back here at www.insidehobokenrealestate.com for a weekly report on Mondays with new to the market, price changes, under contracts and solds. The Friday entry contains all of the open houses in Hoboken (www.hobokenopenhousemap.com)

I strive to give my clients, both sellers and buyers, a comprehensive and insightful look into the real time Hoboken market data which is not readily available from other realtors.

Please let me know how I can be of further service in your real estate needs

Attention Post Tax Credit Hoboken Buyers: The greatest time to buy a home in the history of mankind is now.

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