The Middlesex Minute

The Middlesex Minute

Alka AnejaThese questions are probably the most asked questions today.

The market has changed more quickly in last few months than many of us ever imagined. The prediction was that the growth will slow down, not decline, as long as the interest rates don't go up and consumer confidence stays high. Although the prime rates did increase, and the consumer confidence did decrease, even then, the reason for such a decline is not explainable, and has baffled many of us who didn't expect this to happen.

I truly believe that the media crying bubble, bubble, bubble for so long has finally caught up with us and I believe that this will be short lived – may be 6 months, may be a year or two. We will see the market go up once again when the dust settles.

So what else is causing this? There are many buyers taking sidelines right now and there are many sellers who are trying to sell fearing the worse is yet to come. This is creating an unnatural inventory increase thereby putting pressure on the prices. Also, many investors who were counting on substantial price increases are trying to sell as they don't want to hold on to their inventory.

So what do I suggest? To sellers, I say that if you don't have to sell, don't put your home on the market. If you put it on the market, then be prepared to accept the market the way it is. To buyers, I suggest that they take advantage of this market where the consumer confidence is lacking and buy while things have slowed down and the choice of inventory is plenty. Otherwise, you may end up waiting for too long, see the prices go up again, and meanwhile have lived in an apartment wasting all your rent and no tax benefits. Also, if you are planning to move up to a bigger home, this is a great time to do so too. Larger homes have seen a bigger adjustment in price, so your perceived loss in your current home will be well made up with the gain from buying the larger home.

Have questions or comments? Call me today at 732-494-2211 x 105 or e-mail alka@ontrackrealty.com