orly chen – bergen county's premier
real estate agent
O: 201.567.9191 / C:
it comes to housing prices, though, higher prices
may mean good news for some but mediocre news for the
Impact on the Housing Market
Unemployment rates are dropping,
and the economy is growing, according to the most recent jobs
reports released by the US government. This is welcome news
to many, especially those who have been under water or have
feared losing their jobs throughout the years of economic uncertainty
that Americans have been enduring. Although this news may be
good in the larger sense, when it comes to the housing market,
we need to look a bit further beneath the surface before celebrating.
It is true that the past year has shown some improvement to
the housing market. Prices on homes are rising, which is a sign
that the market may be closer to returning to its pre-depression
stability and prosperity. When it comes to housing prices, though,
higher prices may mean good news for some but mediocre news
for the big picture. Higher prices, mixed with a still unstable
buying population, may be keeping the housing market at a stand-still.
The major culprit is an unstable buying environment for the
housing market's most important group: first time home owners.
The younger spectrum of the population - aged 25 to 34 - have
always been the strongest force behind a healthy housing market.
First time homeowners, typically young professionals and newlywed
hoping to start families, are a major driving force for the
housing economy. However, for this sect of the population at
present, futures are very uncertain. This is a populous who
got out of college and entered the work force right as the economy
was imploding. Jobs in the fields that these young would-be
professionals paid high-ticket prices to become educated in
were sparse. Many took jobs they were overqualified for or went
back to school for further education - either a higher degree
or a comparable degree in a new, potentially more sound, industry.
The current state of the higher education system in America
has left these young professionals with crushing loans. And
still despite some sunny spots in the economic forecast, jobs
are not available enough to fuel a certain future that pays
off the student loans and can also handle a mortgage payment
long term. Further still, many individuals who are in their
late twenties or early thirties are now professionally, due
to a lack of jobs several years ago and a pursuit of more education
to circumvent it, in the lower-level positions that many of
their elders had in their early twenties. A shift is occurring
that means success is reached later, as is financial stability
or, if they're lucky, prosperity.
So what does this mean for the housing market? Although prices
are stabilizing, a drastic downturn in motivated young buyers
is keeping the market at large stagnant. Mortgage applications
are down 42% from where they were one year ago.
Application to refinance existing mortgages are down by 52%.
All of this means that the applications to purchase new homes
are flatlining, leaving the housing market in some my form of
limbo rather than allowing it to grow.
RE/MAX of Tenafly
Associates lead agents
competing companies in
specialized training and
They dominate the Accredited Buyer Representative (ABR), Certified Relocation
Professional (CRP), Certified Residential Specialist (CRS) and Leadership Training
Graduate (LTG) ranks. Read
About Orly Chen
Chen is a leading
Tenafly real estate agent
in Northern New Jersey
specializing in the Bergen
County area. Her
integrity make Orly
one of the most sought-
after agents in the
Northern New Jersey
real estate market