May. 20, 2009 - Housing market driven by first time buyers

Home buyers are leaving the fence

Year to year local home prices fell between 9 and 18 percent between 2008 and 2009.  This reduction in home prices along with low mortgage rates is fueling lower priced sales in the area and resulting in some competitive multiple bids on homes.

Jeffery Otteau, president of the Otteau Evaluation Group, provides statistics on New Jersey real estate trends.  Otteau reported the average price of a Middlesex County home fell from $370,508 in 2008 to $305,297 in 2009, a drop of 18 percent. 

In Union County, the average price in 2008 was $445,685 in 2008, but fell to $384,188 this year, down 14 percent.

In Somerset County, the average price of a home fell from $449,683 in 2008 to $408,337 this year, down 9 percent.

All signs are for those with stable employment, a sufficient down payment and qualifying credit now is an excellent time to purchase your first home.

At the same time, those home owners looking to remain in the same area but move up to a larger home, this too is an excellent time. Does moving up to a larger home make sense?  Ask yourself these questions to find the answer.   (Read more)