Buying a home is one of the most significant life decisions you can make. When your timing is right, becoming a homeowner can be a powerful investment in your financial future. And if you’re looking to invest in real estate, timing is vital to avoid costly mistakes.
At Dennis and Marshall Lynch Real Estate, we understand the importance of buying and selling real estate at the optimal time. Like many things in life, the market fluctuates widely. That’s why we’re here to support you on your real estate journey.
Location is often an important factor in real estate prices — you may even be familiar with the phrase, “Location, location, location.” The state of the economy also plays a massive role in real estate prices.
As if the real estate market wasn’t complex enough, the pandemic has only thickened the plot. A recent press release suggests that the New Jersey housing market is one of the markets most at risk from the economic impact of the pandemic.
The New Jersey housing market at risk
According to the recent press release, New Jersey, California, Illinois and New York are among the states with the highest concentration of at-risk housing markets related to the ongoing pandemic.
The economic threat catalyzed by the coronavirus pandemic still looms over the United States. As a result, the housing markets in certain regions, including New Jersey, are at higher risk of being hurt by a potential economic downturn. So what does this mean for homebuyers in New Jersey and other vulnerable areas?
Essentially, the pandemic continues to present a threat to the overall economy. A potential downturn in the economy could negatively impact housing in vulnerable locations, such as some parts of New Jersey.
What makes a housing market “at risk”?
The press release explains findings gathered by ATTOM, an organization of real estate industry experts who curate and analyze real estate data. The organization’s Special Coronavirus Report for the last part of 2021 revealed which states and counties are most vulnerable to experiencing an economic downturn from the pandemic.
ATTOM analyzed a combination of factors to define which counties were the most at risk of a financial downturn. Some benchmarks of a vulnerable housing market include:
- Underwater mortgages, where the amount you owe on the home is more than what it’s worth.
- Markets that have a high percentage of foreclosures.
- Unaffordable housing — in some places, the cost of housing is well over 30% of average wages.
Last year alone, housing prices skyrocketed, increasing more than 10% in many places. Low mortgage rates and higher demand for less densely populated housing have contributed to a competitive market despite the ongoing pandemic. Further, there are only so many houses available to buy, resulting in high demand and higher prices even through the pandemic crisis.
Because of these factors, housing is often more costly than ever, and the real estate market is even harder to traverse.
Dennis and Marshall Lynch can help you buy and sell real estate wisely
When it comes to the real estate market, it’s essential to know when to buy, sell or wait. The stakes are high and buying or selling real estate at the wrong time could be detrimental. That’s why Dennis and Marshall Lynch strive to empower you to make the wisest real estate decisions possible.
Based out of Rumson, NJ Dennis Lynch and Marshall Lynch are a skilled real estate analysis team on a mission to help you navigate the fickle real estate market. Whether you’re looking to buy, sell or invest, we can help you understand your options and make the wisest choices possible.
Contact us today to talk more about your real estate goals and how we can help.
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