Posted by SooYeon(Pia),Shin
Housing market started to show signs of recovery. Sales in housing market have begun to increase. It is because mortgage rates hit the record of low and prices have fallen very much compared to this time in past years. Especially, the first-time home buyers are getting advantage of government incentives.
Carolyn Janik, an author and former real estate agent, developer and landlord, expected what would happen in the housing market.
Q. What changes do you see in home buying behavior?
A: People are getting smart and, now, carefully consider about buying a home. They look for house that they will live for a long time.
Q: What's going to happen to the residential real estate market?
A: “Prices have fallen, and they're going to stabilize (Janik).” When prices establish to stabilize, people can start to sell their four-bedroom houses in New Jersey and will look at South Jersey, where senior communities are around. Then, I believe the housing market will revitalize.
Q: What types of real estate should people avoid or stay away from?
A: People should stay away from condominiums which have been overbuilt, especially retirement communities. But, the houses that are to be resaled are the good ones, since the owners do not expect to get the same prices as the builders.
Q: And how about good buys?
A: Houses that are older than 10 years are good. Also, the multifamily houses are very good market right now. The reason why it is a good market is that those are not overbuilt.