Hold on to your hat! The Real Estate Market’s back!

March 2007

What started as whispers and quiet talk between realtors in agency offices, or at meetings, or when one or the other picked up a key for a property showing, has now changed into a bit bolder conversation, and a bit more open jubilation, and a lot more positive media coverage about housing (in some locations across the country including South Jersey). This doesn’t mean that everything is back to normal… but what it does mean is that the real estate market is a lot different from what it has been for the past eighteen-to-twenty months.

The National Association of Realtors started this public relations effort with the catch phrase: “It’s a good time to buy and sell real estate.” Most realtors in locations throughout South Jersey, looking at a large inventory of sale listings and a historically low interest rate for mortgages, began to realize that we might have reached the bottom of this slow market. And in January and February of this calendar year, the inventories in many locations have slowly moved in this downward trend.

The next step in this march to view a changing real estate market has been the realization by potential Buyers that it might just be “the time to buy.” Why? As they talked with local agents, they could see that the present listing prices reflected what might probably be “the lowest point” in many property categories…with the understanding that if one waited too long, the result would be you would be paying much more for a similar property in the years, and maybe even in the months, ahead.

Many reviewers of the real estate market across the county predicted a turn-around (to some extent) toward the middle of 2007 … this same prediction was also made by some in the South Jersey area. But all of this review, reaction, and prediction (possibly including this column) are just that: a serious attempt to provide additional insight to the reader, the potential Buyer who might want to make the move depending on all that they have been seeing and hearing during the past few months.

The real concern for the Buyer as they begin this renewed process of “looking for the right property” is that sometimes, and in particular in the second home or investment market, there is often “no right property.”

That means that the Buyer may have to stay the course and possibly pull the trigger in order to grab “a best buy” right now. Of particular concern, the Buyer should not overpay for the property...a situation in which a part of the forthcoming future market appreciation is taken by the Seller at the Buyer’s expense.

So, indeed, as we arrive in the month of March and the traditional kick-off time for the “Spring Buying Period” around South Jersey, it may be too early to tell how the first half of 2007 will turn out for real estate. But it is definitely not too early for would-be Buyers to be checking out their favorite locations. In fact, many of your buyercompetitors have been doing that for the past two months.

Real Estate “Tip of the Month”

There are typically three major real estate “property categories” for most Buyers: single family, multi-family, and condominiums. It’s important for Buyers to understand each property category as they determine what type of property might be of interest to them. A great deal about choice depends on how one hopes to use the property…a yearround residence, a second home, an investment property, etc. Although many condominiums sell as high and even much higher than single families, “land value” is often the issue with single family properties in that it is “the land” that carries the most value.

Multi-family properties, particularly duplex units, have often been the choice for many Buyers… i.e. live in one, and rent the other.

Unfortunately, the number, location, and condition of many of these units don’t fit with the Buyer’s time, skills, and even financial consideration. Generally, the entry level for many Buyers is the condominium category because one can find them in varied price ranges, sizes, locations, and conditions. There is often something for everyone in this property category.

Since no two Buyers have the same considerations, the important thing is to spend enough time with a real estate agent of your choice to review your needs, wants, and concerns … and to receive appropriate feedback so that you can make intelligent decisions. Buying a property is never an easy task. In fact, it can be quite a challenge. Finally, locations throughout South Jersey are the same in many ways and far different in other ways. Find the appropriate local realtor to make your “buying process” be a successful one. And in the present market conditions, don’t wait too long to do it.

Dustin A. Peters is an Agent with French Real Estate, Inc. – Ocean City, NJ. He invites readers of this column to submit comments and questions to him at DustinPeters@Realtor.com.