According to an article published through Bloomberg, it seems the epicenter of the crisis facing the US in the real estate sector is slowly shifting towards New Jersey. This scenario is threatening a recoil in housing in New Jersey, which is densely populated. New Jersey is leading in the areas with the highest rates and shares of residential mortgages facing foreclosure and extremely aberrant. This has seen the real estate markets present in the area trail the rest in the country. However, there is hope that positive trends are on the way once the shortages and looming affordability crises are determined and resolved.
Lawrence Yun, the chief economist of the National Association of Realtors, believes that housing shortages could turn into an emergency situation. Lawrence believes that if the widening gap between housing demands and supplies is not checked there could be a problem. According to the NY Times, this is due to the shortage of homes for sale and auctions as well as the rapid pace in which the new ones are being sold. Other befuddling facts involve the falling housings and housing permits. This means that the unclogging of the inventory bottleneck results in a myriad of new properties getting into the market with the urgency of being sold fast. This could make the situation worse than it is already in New Jersey. Economists remain pessimistic that this drop could build up in the coming months since building permits declined in May.
However, New Jersey remains on the course of real estate renaissance. According to Zillow, a tracking giant in the real estate industry and other economic reports, part of the reasons for the renaissance is the possibility of housing prices appreciating. Households can in future expect an improvement in the selling conditions. Despite the sentiments of house shortages and selling, a large number of vacant homes and houses have been kept off shelves. This is mainly due to the expectations of increased gains from them by the owners. The state of the real estate market in New Jersey is expected to lead to a boom due to the area’s close proximity to transit and lower property prices and higher interest rates possibility of bringing more homes to the market.
About Boraie Development
Boraie Development is a real estate company based in New Brunswick, New Jersey. The Sam Boraie led company focuses on the areas of property management, urban real estate development and marketing. The company is dedicated to offering spectacular buildings while at the same time offering clients with an unparalleled service. Boraie.com works with visionary architects and contractors who work with deadlines.