Geri Smith is a New Jersey Monthly Magazine 5 Star Realtor

Geri Smith
Broker/Sales Associate,
GRI, ABR, SRES, ASP
Geri Smith specializes in New Construction and Resale Real Estate Deals

Quality Service to Make Your Real Estate Dreams Come True

New Jersey Monthly Magazine 5 star Realtor logo
Join My Email List

Tel No: (908) 391-3271 e-mail: gerismith@gerismithrealtor.com
At gerismithrealtor.com you will find the finest homes, new construction and resale, for central New Jersey. I pride myself on ensuring that my buyers and sellers are well represented with the highest quality of expetise and integrety. As a result, my previous customers voted me a FIVE STAR Real Estate Agent in the March, 2011 issue of the New Jersey Monthly Magazine. An honor only accorded to less than 2% of all licensed New Jersey realtors. I look forward to assisting you with your real estate transactions.

MarketTrends

4 Financial Reasons to Buy Now


The KCM Crew April 12, 2011

  1. Interest Rates Are Increasing

    Interest rates have increased almost 3/4 of a point in the last six months. Most experts expect rates to continue to increase through the year. Interest rates along with price determine the overall cost of a home. Even with prices softening, if interest rates rise, it may be less expensive to buy now rather than wait.

  2. The 30-year Mortage May Disappear

    There has been much debate regarding government's role in providing support for homeowwnership. There are several experts who believe if Fannie Mae and Freddie Mac's roles are eliminted, or even limited, it may be the end to the 30 - yeamortgage. The concern is addressed in MSN Real Estate's Is it curtains for the 30-year mortgage?

  3. QRM Requirements Could Be Much More Stringent

    Here are proposed changes to the requirements for a "Qualified Residential Mortage"

    • Certain mortage types would be eliminated
    • You would need to put a minimum of 20% down
    • You would need a minimum 690 FICO score
    • The ratios of income to both the mortage payment and overall debt would become much more conservative (28% and 36%)

    There would be loans available to purchasers who don't qualify under the new rules. However, they will probably be more expensive to the buyer (both in rate and costs).

  4. Rents Are Expected to Increase

    The supply of available rentals is decreasing and the demand is increasing. That will lead to the increase in rental costs throughout the year. The Wall Street Journal this week quoted a report by Reis, Inc.:

    "Expect vacancies to continue declining, and rents rising through the rest of 2011 at an even faster pace"

BottomLine

You may be waiting to see if price will continue to depreciate before you purchase a home. The mortage expense is a major piece of the in the overall financial pictue of homeownership. Make sure you consider it when timing your decision.

New Jersey Market Status: Red

The Real Estate Bubble

real estate bubble chart

The chart to the left indicates how bad the real estate bubble was. Of Interest is that even after the bubble burst, we are still slightly ahead of where inflation adjusted and nominal home prices would have been. In my opinion, it will be many years before the nominal and inflation adjusted prices of homes trends return to the values of the bubble. Conclusion, if you are waiting for 2004 to 2008 prices to return, you have a very long wait.