In the current market, certainly in New Jersey, there are incredible opportunities for homebuyers.  Unfortunately, many potential homebuyers sit on the sidelines, frightened by the terrifying reports of the media.  And many, courageous enough to step out of the shadows, don't really know what steps to take next.  I offer some advice to them.

The very first step is not necessarily obvious.  Everywhere you look on the Internet there are homes, from Realtor.com to Zillow.com, and everywhere in between.  They're on Craigslist.  They're on Visualtour.com.  Some even pop up on eBay.  And then, there are the temptations on HGTV.  You can make a bundle "flipping" a house.  You can see all the choices out there.     But what do you do first?

You contact a mortgage representative. 

Crucial today to the buying process, like never before, is the mortgage approval.  Your buying power is related not only to the amount of money you have for a downpayment, or the income you earn to support the mortgage, but more than ever your credit-worthiness.  If your credit score is not over 680, say, you may a) have to put more down to purchase, and b) pay a higher interest rate.

Both a) and b) can severely limit what you can buy. 

So, where do you find a mortgage representative?  You can ask friends who have recently purchased a home, ask a Realtor® you might know, or just approach one of the large, heavily advertised mortgage companies.  But approach only one. 

Once you get a handle on what you can qualify for, then start the process of looking at homes, online, in person, whatever.  But, be certain to use a Realtor® who knows the market.  Eventually, that agent of yours will recommend a good mortgage representative, and you really should rely on that agent.

Buy a home now while selection in many parts of the country is high and interest rates are low.  These conditions will not last for ever.

The headlines are shrieking again, this time about the Commerce Department's report yesterday that new home sales in March were the lowest in sixteen years or so.  ABC News even opined (in the guise of reporting) that this report indicates that the housing market is getting worse. 

Wrong again, folks.

New homes are a different critter from resales.  Generally, the time from contract to closing is longer than in the case of resales.  Six to nine months is not unusual for new homes to take to close.  The mortgage crisis peaked in August 2007.  Contracts for all home sales in September and October were hit very hard, and the holiday season was much slower than had been expected because of the mortgage problem.  Resales from that period closed in December and January, really poor months in terms of numbers of sales.  New homes contracted in the gloomy period would just about now be closing because of the lag time.

Same pig, different python. (Still the mortgage pig, but the new homes python)

New homes will probably continue to be off from 2007 for the next several months as the 6-9 month period for new homes "gestation" continues to reflect earlier issues that seem to be improving as seen in resales numbers, certainly in Central New Jersey.

Hedge fund managers still influence the news as they peddle panic in real estate to sell more funds.  Will the media ever ask the right questions?

In a press release yesterday the National Association of Realtors® cited a "slip" in existing-home sales closed in March.  The national median home sale price was down 7.7% from a year ago.  Keep in mind that home sale prices do not move on national averages.  That "national market" is essentially a myth.

Both the West and the Northeast saw increases in activity - 2.2% in both regions - from the preceding month.  But the West region experienced a 22.3% drop in activity and the Northeast 18.8% from March 2007 to March 2008.

The Northeast, of all four regions, was the only one that experienced a rise in median sale price, up 4.6% to $284,300. 

Remember, that all real estate is local.  To be an informed consumer, you must read behind the headlines.  To be a successful consumer, consult with real estate experts.