Movement seen toward more equal footing for buyers and sellers
It appears that New Jersey’s hot sellers’ market, in which houses sold quickly and at a premium, is in transition to a more balanced market.
Today’s market is being driven by the following factors: a sustained decline in mortgage interest rates which has made homes seem more affordable; tight, but easing inventory; aggressive mortgage lending; some shift of investment money into the real estate market; and, the resiliency of the housing market in the slowing economy. These conditions make for an optimistic forecast for New Jersey’s real estate market and the potential move toward more equal footing for buyers and sellers in the marketplace.
High-end properties are the first segment of the real estate market that has started to see a leveling off of prices and the growth of inventory during the third quarter of this year, according to Ann Davis, broker/owner, ERA Advantage Realty, who predicts a continued stabilization of home prices in the fourth quarter.
Buyers today should begin to see some changes taking place in the market such as sellers putting in more money to fix up their homes and a slower pace, both of which are better for buyers. In a fast-paced sellers’ market, you barely have time to properly check out the house. However, buyers need to understand that sellers are still in a powerful position in this market and they should not expect sellers to accept contingency offers, which base the contract on the sale of their own home, a widely accepted practice in past markets.
"If you are a first-time buyer, and have to move, you should hire and stay with a buyer’s agent, be ready for the seller to be in the driver’s seat, but do not be intimidated. Existing houses offer a better value over new construction," adds Ms. Davis.
For more information, consumers can contact their local ERA office or visit www.ERA.com.

