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mortgage interest rates

Performance Property Real Estate Question

When Will Home Sales Finally Increase

Q: I’ve been a realtor for over 10 years and I’ve never seen so few home sales as there are now. When do you think home sales in NJ will finally increase? Gina, Long Branch, NJ A: The number of home sales in NJ are down 75% from their normal rate right now. Most residential real estate transactions are trade up or trade down meaning existing home owners sell a home in order to buy a bigger more expensive home (i.e. to accommodate a growing family) or existing home owners sell a home to then buy a smaller less expensive one (i.e. when people retire). Because mortgage interest rates remain relatively high, most existing home owners are not willing to […]

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Performance Property Real Estate Question

Huge Risk To Buyers Of Newly Constructed Homes

Q: Gerald, we signed a contract to buy a summer home last year.  We expected the builder would be finished by now, but it has taken much longer than expected.  Mortgage rates have gone up a lot.  Can we back out and if we do, will we lose our deposit? Dalia, Edison, N A: Home buyers who signed contracts to buy newly constructed homes in 2021 are potentially facing almost double the mortgage payments they may have initially expected because mortgage interest rates have risen from 3% to almost 5.5% as the Federal Reserve started raising short term interest rates.  There is always a greater mortgage interest rate risk whenever a real estate transaction takes longer to be completed.  Labor […]

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