Waiting and Seeing

Right now, many buyers are in wait and see mode. This happens in the stock market too. When there is fear and an air of pessimism about the economy and the market, in general, buyers become hesitant to buy. The irony, of course, is that this is the best time to buy, especially in this area.

Some people think the real estate market has not yet hit bottom and want to wait for that. Others are just afraid...the excessive doom and gloom media coverage does not help. But as the Realtor commercial says on television, the market is highly localized. And it is. Hoboken has had a slow and steady decline in prices over the past two years. No one knows for sure; prices may continue to go lower. However, truly, prices are better now than they have been in years. Sellers are now educated and aware that they are in a buyer's market and there is more overall flexability in terms of negotiating price. Money is harder to borrow and therefore, sellers are also less willing to let a good qualified buyer walk over a few thousand dollars.

That said, this is not the Midwest and foreclosures and short sells are rare. This is an affluent area overall and the job market is stronger here than elsewhere. It is unrealistic to think this area will be affected to the degree that areas like Florida and California have been affected. Due to proximity to Manhattan, Hoboken fares far better than almost all other real estate markets. It is a relatively stable market.

Interest rates are still very appealing. The time to buy is when prices are down and optimism low in a neighborhood that traditionally does very well due to location. If you can buy and not sell in less than two years, a buyer has an excellent chance of making a profit, though a smaller one, in a prolonged period of market adjustment.