Bergen County NJ Real Estate Blog

If you’ve turned on the TV or read the news in the last few months, you have certainly heard buzz about the supposed “credit crisis” taking over America.  Tales abound of  Bergen County NJ real estate buyers being required to put 20% to purchase a home, or first-time buyers unable to find a lender to write them a loan. It seems the press just can’t get enough of all the “misery” in the Bergen County NJ real estate market.  But is this what’s really happening?  Let’s take a look at the facts:

Indeed, we are in the middle of what might be considered the biggest disservice ever perpetrated on potential home buyers.  The truth is that mortgage money is as available today as it was a year ago and loans are being made with little or no money down.  Wondering who these lenders are?  They may be right down the street – you just have to know where to look!

Federal Housing Administration (FHA) loans are making a huge impact on the mortgage industry; recent estimates show that about one out of five mortgages is an FHA loan. Although FHA loans never “went away,” their re-emergence is a result of the collapse of the sub-prime market. Although the FHA doesn’t technically require a minimum credit score, most lenders will not approve an FHA loan with a credit score below 500. That is still a far cry from the notion that an 800 score is the bare minimum for potential buyers.

Perhaps the biggest advantage of an FHA loan is that it requires only a 3% down payment. You read that correctly – 3%! Moreover, that 3% can come in the form of a gift or grant.  FHA borrowers only need to have $500 in a transaction.  On top of all this, FHA mortgage rates are as good or better than their conventional counterparts.

Extremely competitive rates, low or no down payment, and easier qualifying.  No wonder FHA is moving up the charts!

Please call me at 201-930-3070 or visit PaulaClarkRealtor.com if you would like more information about FHA loans, a referral to a reputable local lender, or help getting into your first Bergen County NJ home. You may also begin searching Bergen County NJ real estate here!

Bergen County NJ Real Estate Sales Expected to Stabilize Through Summer

Little change is expected in New Jersey real estate sales of existing homes over the next few months, before notably improving during the second half of the year, according to the latest forecast by the National Association of Realtors.

Lawrence Yun, NAR Chief Economist, said the market will come into clearer focus this summer. “Existing home sales could start to show a sustained increase within a few months, unless there are some additional economic problems or excessive inflationary pressure,” he said. “The wider access to affordable credit should increase sales activity notably this summer as pent-up demand begins to be met.”

Let’s take a look at the sales statistics for Bergen County in March 2008 to what is happening locally:

Residential sales in Bergen County dropped by 30 percent in March compared to March 2007, causing the average market time to increase 11 percent, from 99 days to 109 days. The average sale price increased 4 percent to $673,132, while the SP to LP ratio decreased by 2.31%.

Now is a GREAT time to be buying a home in Bergen County. To learn more about Bergen County real estate, please contact me at 201-930-3070 or visit PaulaClarkRealtor.com. To begin searching for Bergen County homes, please use our complimentary MLS search.

The volume of existing-home sales is expected to hold steady through late spring, with a gradual recovery during the second half of the year as the mortgage situation improves in high-cost areas, according to the latest forecast by the National Association of Realtors®. 

Lawrence Yun, NAR chief economist, said many buyers have been waiting for higher mortgage loan limits.  “The higher loan limits for both FHA and conventional loans will increase consumer choice and provide greater access to lower interest rate mortgages in high-cost regions,” he said.  “Therefore, a notable rise in home sales can be anticipated in the second half of the year.

Let’s take a look at the sales statistics for Bergen County NJ  in February 2008 to determine if the market is holding steady locally:

Bergen County NJ real estate (residential) sales dropped by 35 percent in February compared to February 2007, causing the average market time to increase 10 percent, from 105 days to 115 days. The average sale price dropped 5 percent to $659,667.

Now is a GREAT time to be buying Bergen County NJ real estate. To learn more about Bergen County NJ real estate, please contact me at 201-930-3070 or visit PaulaClarkRealtor.com. To begin searching for Bergen County homes, please use our complimentary MLS search.