Elizabeth, a real estate veteren, always has excellent insight and her finger on the pulse of the market. Here’s her take on the current real estate market.
March came in like a lion with a flurry of activity. We’ve seen multiple listings reach the best and final stage and highly sought-after properties quickly find new owners.
National Outlook
Last week was successful for the markets and rates, with rates adjusting down from the high 6’s. Strong economic data contributed to lowering rates back to the mid-6s, with the current market ranging between 6.25% – 6.99%. These reduced rates have resulted in increased buyer demand and a notable number of accepted offers.
Hudson County & New Jersey
Demand in Hoboken is very high, with currently fewer than 50 active 1-3 bedroom listings, resulting in limited inventory that subsequently drives up prices. Hoboken’s absorption rate is less than one month, while Jersey City and other Hudson County neighborhoods have more inventory in these home categories. Although the rental market is active, it is not as strong and tends to see more seasonal activity.
A sought-after program that has garnered recent buyer interest is down payment assistance, which is offered through the state of New Jersey, providing a $15,000 grant for eligible individuals. Pros and cons:
Pros:
- $15,000 grant from the state applicable towards closing costs and down payment (potentially up to $22,000 for first-generation homebuyers).
- Acceptable credit scores as low as 620.
- State-set rates, unaffected by credit score variations.
Cons:
- Each program imposes an income limit based on the county of purchase.
- The $15,000 grant must be repaid if refinancing, moving out, or selling the property within the first 5 years.
- Processing time extends by an additional 1-15 days, as the state requires final approval for all loans.
