The Northeast Real Estate Market Should Recover First

By
Mortgage and Lending with Pinnacle Mortgage NMLS# 147581

I have been saying this all along and now the Harvard University's Joint Center for Housing Studies concurs.

The Northeast is likely to emerge from the housing slump before other regions of the country because:

We did not experience the same level of over building as other parts of the country.

We did not see the same level of drop in sales levels.

We did not see the same level of price drops.

 

The Northeast is densely populated with little open space.  There was comparatively little low end "starter home" construction during the boom.  Owning your own home is still the american dream.

 

There is pent up demand and buying will resume as soon as confidence returns.  I believe the Wall Street Rescue Package will free up the credit markets and excite the stock market.  The smart buyers are buying now before the media signals that it is ok to buy again.  By the time you read about it in the papers, the bargain priced homes will be gone.

Comments (7)

Marlene Pellegrini
Norwich, CT

I hope so Jeff because I live in the Northeast - Connecticut to be exact!  Only time will tell.  Thanks, Marlene

Sep 25, 2008 03:06 AM
Cheryl Frei - Realtor® & e-Pro Certified Realtor®
Elite Realty - Absarokee, Montana and Billings, Montana - Absarokee, MT

Jeff - I agree about the housing market!  I can tell you this much, yes the housing value had gone down due to what's happening, but in the long run it is a good time to buy.  Due to what happening with the bailout I had buyers who will not buy due to what happening.  They are scare!  The seller are withdrawning their listing off the market due to that the buyers are not buying.  With the whole picture that is going on, I wish the news would be careful on public view.  We need the housing to recover from all this soon. 

Sep 25, 2008 03:07 AM
Lewis Beynon
CENTURY 21 Triangle Group - Raleigh, NC
Triangle Real Estate 411

Locally, Albany is in good shape, prices were up 3.5% in the second quarter, but are now projected to be down 2% in the third quarter.  As you said, the NE did not see the dramatic increases in prices and therefore we won't see the dramatic declines either.  Thanks for the blog.

Sep 25, 2008 03:08 AM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

Jeff, I have found over the years that California usually leads the nation into the troubled waters and seems to be the first one to recover also. We shall see...

Sep 25, 2008 03:10 AM
Mike Klijanowicz
Cummings & Co. Realtors - Perry Hall, MD
Associate Broker @ Cummings & Co. Realtors

AMEN!  You can't TIME the stock market and you can't TIME the real estate Market either!  Thanks for sharing your tips and facts with us!  Hopefully the buyers in our areas will see this and read it too!

Sep 25, 2008 03:17 AM
TIM MONCRIEF
Tim Monciref - Austin, TX
Over 2,000 homes sold…..

Austin is in the same boat as you, and you hit the key word, "confidence".  Right now there is zero confidence in the market.  Over the last week I have had 6 showings with 51 listings.  Pretty darn scary as this is the time of year where are market starts a strong push to year's end......normally.

Let's see if our night in shining armor, McCain, can perform some magic over the next two days.  If not, he is toast, and I do not see the confidence level improving for a very long time.  We are in very scary times right now and the market is in a complete stall waiting for a white knight to stand up to these corrupt politicians.

Let's see if he comes rolling in Ole Miss on Friday on a white horse.....or if there is a horse with a head on it.  I am voting on the former.

Sep 25, 2008 03:23 AM
Jeff Lutcza
Pinnacle Mortgage - Wayne, NJ
Mortgage Consultant

You're absolutely right Michael!  The buyers who are waiting on the sidelines for the "all clear" signal will miss the boat.  You won't be able to identity the bottom of the market until it has past and prices are rising again.

The deals are out there NOW!

Motivated sellers are negotiable NOW!

Interest rates are low NOW!

The 1st time buyer credit is available NOW!

 

If you snooze you lose.  It is up to us to convince our buyers to get their heads out of the sand, ignore the biased media and get into the market.  Sure you can't buy and flip houses for a profit now but if you are buying a home it is still the best long term investment.

Sep 25, 2008 03:42 AM