Mar. 17, 2007 - Home Inventory is High

Is now the time for buyers to leap into home ownership?

Despite all of the recent news of sub-prime mortgage lenders' woes now may be the ideal time for prepared buyers to take the leap into home ownership.  What hasn’t been widely reported is the fact that the sub-prime mortgage market only comprises about 15% of mortgage money and potential foreclosures.  Those most at risk are borrowers with poor credit or those who obtained "no money down" mortgages without fully documented incomes and who probably should have never been given a mortgage in the first place.

Potential home buyers with good credit scores, documented income, and an adequate down payment should be able to secure mortgage money from a variety reliable and available lenders.  Further, mortgage rates remain historically low. 

The conditions remain ripe to find the right home, with a high inventory of homes and prices stabilizing in the Somerset and Middlesex areas. When the current supply of homes dwindles, prices will likely rise again.  Right now, buyers have option to view many homes, to compare and the time to negotiate a market price for their home.

It should not go unnoticed that historically speaking, despite the recent decline in local home prices, long term home ownership has proven to be a great investment.