Bergen County contains many of New Jersey’s most beautiful $1 million homes surrounded by gorgeous, green countryside. Prior to the recession, people were standing in line to purchase one of these luxurious mansions and Bergen County real estate was probably the most coveted real estate in the area. When the recession hit Bergen County, sales of $1 million homes decreased almost 50 percent, with just 80 sales occurring in 2011. However, with the recession over, the economy stabilizing and the U.S. housing market experiencing a “boom town” feel, those $1 million Bergen County homes are starting to fly off the racks like the latest issue of Rolling Stone magazine.
During the first half of 2013, Bergen County experienced 72 sales of homes valued at over $1 million, encouraged by increasing interest rates and the sense that home buyers really need to start stepping up their decision process before this “boom town” housing market vanishes as the economy improves. According to statistics culled from the New Jersey Multiple Listing Service, 30-year mortgages in Bergen County hovered around the 3.35 percent mark during the first half of 2013. Now, they are near 4.45 percent.
Even though that is still considered low, these rates will still make a dramatic difference in regards to the life of a mortgage. For example, if your monthly mortgage payment is around $200, you will be paying nearly $75,000 with a 30-year mortgage. Moreover, Bankrate.com claims that the overall average for a substantially high U.S. mortgage–one that is over $600,000–holds a 4.70 percent for this summer while last year at this time, mortgage rates for this amount were 4.4 percent. In comparison, the 6.95 percentage experienced by high-end homeowners in 2006 is several points higher.
Forbes Magazine further reiterates the advice that now is the time to invest in high-end real estate, especially in commercially thriving areas like Bergen County. ARMS, or adjustable mortgage rates, are currently enjoying record lows, down payments are negotiable and many lending institutions are foregoing mortgage loan points and fees, which dramatically reduces the expenditures involved with purchasing a $1 million home.
Established Bergen County real estate company Orly Chen suggests that people interested in one of these fabulous homes take action now before the economy rebounds even further and inflation begins rising once again. Investing in a $1 million+ home before the end of this year means that you will be taking advantage of one of the greatest housing booms in the history of the U.S., as well as the chance to live in New Jersey’s most desirable and upscale neighborhoods.