Posted by & filed under Buying, Selling.

Here is a quick update for you and it is indeed great news.  Buyers are back.  As a result activity’s up in the real estate market.

There has been a noticeable increase in the number of people looking at homes over the past two weeks.  We’re seeing more buyers coming out on Sundays to our open houses.  We are also receiving more calls into our offices and more web responses to our internet postings.   The Bergen County real estate market has become very very busy.

At the same time, the inventory of homes for sale is growing daily.  More and more people are putting their homes on the market for sale now that we’re safely past the snow season.  Most home owners do not want to sell their home during the winter weather.  As a result having the number of homes for sale grow significantly at winter’s end is quite normal.

The reason for home buyer activity is improved market conditions.  Because market conditions for buyers have improved greatly, buyers are back.  Prices are down substantially from 2004 (by 20 to 25% in most areas) and mortgage rates tumbled over the past 2 weeks.

Jeffrey Otteau is  one of the most respected analysts of New Jersey real estate.  When he speaks people listen.  Here is his take on things:

Mr. Otteau announced last week that New Jersey real estate will depreciate another 9% in 2009.  He went on to say that prices will stay at that level in 2010 as the real estate market stabilizes.  For many home buyers, this combination of factors made buying a home now a great idea.

It will be interesting to see if this pick up in activity continues and for how long.  I have a funny feeling that the “smart money” is buying a home now.  Only a lucky person picks the market bottom but I must say that we’ve got to be pretty close to it now.  What I do know is that buyers are back and that’s a very good thing.

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