The Otteau Group conducts an in depth review of the N.J. real estate market, with particular insights to the influences and trends affecting the real estate industry. Their information is not limited to Multiple Listing Service reports, but is compiled from all data reporting services and county sales.
Some highlights of their 3rd quarter 2005 meeting, was the slow down of real estate activity in the residential market. It was reported that unsold inventory was up 20%. Prices had accelerated in the first half of the year, up 14% on average, but approaching 0% in the 2nd half. Housing strengths include job creation, gradual rise of interest rates, population growth and high oil prices holding back interest rates.
And for the same reasons, buyers have hit the brakes on buying. Interest rates are rising. Energy prices will take a bite out of spending. N.J. job growth is disappointing. Absorption of new homes is slowing, leading to a sharp, quick rise in unsold inventory.
It has been found that buyers are taking on a more European stance and planning home purchases later in life. Baby boomer parents offer a comfortable, and sometimes affluent home life. Home prices have outpaced salaries. With interest rates rising, buyer price resistance is increasing. According to Otteau, more than half of current inventory is overpriced. Entry level and waterfront properties will outperform the market.
Some highlights of their 3rd quarter 2005 meeting, was the slow down of real estate activity in the residential market. It was reported that unsold inventory was up 20%. Prices had accelerated in the first half of the year, up 14% on average, but approaching 0% in the 2nd half. Housing strengths include job creation, gradual rise of interest rates, population growth and high oil prices holding back interest rates.
And for the same reasons, buyers have hit the brakes on buying. Interest rates are rising. Energy prices will take a bite out of spending. N.J. job growth is disappointing. Absorption of new homes is slowing, leading to a sharp, quick rise in unsold inventory.
It has been found that buyers are taking on a more European stance and planning home purchases later in life. Baby boomer parents offer a comfortable, and sometimes affluent home life. Home prices have outpaced salaries. With interest rates rising, buyer price resistance is increasing. According to Otteau, more than half of current inventory is overpriced. Entry level and waterfront properties will outperform the market.
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