2008 Nov 15th

What’s Going On in Today’s Real Estate Market? It’s a Question of Balance.

Hoboken Condo Buyers – Consider This:  Think it through!

Same property  a year from now, or a month from now, or a week from now

The Hoboken Condo Buyer’s Bottom Line

Even though the property value in our hypothetical example declined 15%, the monthly payment only declined 7%.  The savings a buyer might recognize through even a significant price reduction can quickly be eroded by an increase in interest rates.  I’m not predicting what’s going to happen to Hoboken condo prices or mortgage interest rates in the future.  Nobody knows that.  But the facts are as follows; property values are low right now, as are interest rates.  While property values may or may not fall a bit lower before they rebound, interest rates are far more likely to increase.  Taking advantage of low interest rates NOW may outweigh the benefit of future price declines (which may never occur.)  Do the math.  Just some food for thought.

Posted by Lori Turoff | Currently 16 Comments »

2008 Nov 7th

Historically Low Mortgage Rates + Price Cuts = A Buying Opportunity in Hoboken Condos

Mortgage Rates Have Been Below 6% Only 2 Times in Recent History

Yes, we are in difficult financial times and the economy is a mess.  Be it due to a job transfer or job promotion, financial downsizing, a growing family with another baby, a marriage or divorce, or many other reasons, there will always be people who need to buy a condo in Hoboken.  Here is an interesting chart that makes it very clear how low mortgage rates are today in relation to the past:

National Average Mortgage Rates - 1964 to present

National Average Contract Mortgage Rates - 1963 to present

Price Reductions on Hoboken Condos Have Been Happening Like Crazy

If you follow Hoboken Condo price changes on the Weekly Wednesday Wrap Up you have seen that there have been reductions and more reductions.  Many Hoboken sellers find themselves in a squeeze, either already in contract to buy elsewhere and forced to sell their current property, or unable to keep their current home because they’ve outgrown it.  One glance down Washington Street on a sunny day and the ever increasing number of small childred in our community is obvious.  Although the average price per square foot for a Hoboken condo has for the entire year been above above $500 per square foot, there are many Hoboken properties on the market today priced in the $400s.  Many of these properties have NOTHING wrong with them (I’ve seen them) but have anxious sellers who are highly negotiable thanks to current market conditions.  For those today’s Hoboken condo buyers, and they will always exist, the combination of historically low rates and reduced prices can make for an extremely attractive buy.

Posted by Lori Turoff | Currently 7 Comments »

2008 Oct 30th

The Best (Yet) Solution to the Mortgage Mess

Someone’s Been Thinking the Problem Through

There have been numerous articles and explanations in the media of the reason we as a country and our global partners are in such a state of financial ruin.  While most commentators and economists agree that the burst of the housing bubble caused the mortgage crisis which, thanks to securitization, snowballed out of control, there have been few suggestions as to how to fix the problem.  Here is the best one I’ve read so far:  Mortgage Justice Is Blind.  It’s written by John D. Geanakoplos, an economics professor at Yale and Susan P. Koniak, a former law professor at Boston University.  I was glad to see Prof. Koniak was one of the authors as BU Law is where I earned my law degree.

See also:  Under Water Hoboken Condos

If you’re interested in learning more about the state of the mortgage industry and what it’s done to the economy, I recommend this great blog – Diaries of a Mad Mortgage Broker – by Dale Siegel.

Posted by Lori Turoff | Currently 2 Comments »

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