The Real Deal: Ways to stay in the real estate buying game if you haven't already given up
The rising mortgage interest rates is slowing down the housing market -- out pricing Americans who are juggling high inflation while they look for a home.
In New Jersey, Caleb Silver, with Investopedia, says it's why prices of homes here are not skyrocketing the way we've seen over the past year.
"In New Jersey, we've seen some significant rises, but a nice leveling off in the past month across the counties that we track," says Silver. "When you look at Monmouth County, you see increases in the past month of 0.7%, Hudson County had an increase of 0.6% but no increases in Morris County and Bergen County and that shows you that prices are stabilizing finally even though there's very tight inventory. Inventory's tight and mortgage rates are rising so you'll probably see less bidding for those homes that are available."
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If the market has given you a beating with the bidding, there are ways to stay in the real estate buying game if you haven't already given up.
"I'm looking for something that's newer," says home buyer Gina Gardner.
Gardner wants to move back to New Jersey to help care for her aging parents, but in this competitive market --the search hasn't been easy, and it's driving her to tears.
"They can't move to Florida because of health issues and things like that, so coming up here will help them at least for a short period of time," says Gardner. "So, then I don't want to stay here permanently either but also I'm afraid if I look into a house, $700-$750,000 let's say something happens with them am I able to go back to Florida. Then am I going to have that same value of that home.”
Bobbie Galkin and her daughter are the dynamic real estate team trying to help Gardner find the home she needs. But she is searching in a market that's starting to force some potential home buyers to temporarily give up on their home buying dreams.
"I've had several buyers who've lost multiple offers," says Marcie Borke, with Remax Competitive Edge. "They've gone over asking price. They've waived appraisal, which is common in this market. They've waived inspection except for environmental, structural and safety issues, which is common in this market, and they've done all those things that everybody else is doing -- but they're losing."
But the real estate team says there are ways to win a home if you're willing to make sacrifices.
"If you're a person who knows how to fix and do things, a fixer upper could be a good thing," says Bobbie. "I know when I bought my house I had a vision that I knew I could fix this, I knew I could fix that. I just bought because I wanted the location."
If you're renting and you don't have the huge down payment that will help you outbid your home buying competitors, consider a townhouse or condo if the home owner's association dues aren't out of your price range.
Finally, waiting out the market may be an option, too, and many people who already own a home are doing just that.
The realtors say to win bids. Buyers have even offered to pay the New Jersey realty transfer fee, or they've seen couples borrowing money from their parents for a larger down payment, but not everyone is lucky enough to have that option.
Bottom line -- they say with the market cooling off right now, home buyers may start to have better.