During the end of 2006, the large inventory of New Jersey foreclosure listings resulted to lower prices as the market tries to correct itself and buyer activity surge. For the past three months, robust sales activity fueled by low mortgage interest rates as well as a surprisingly strong employment market, was enjoyed. But now, the New Jersey housing recovery seems to be slowing down.
Of course, this can be expected as a result of more delinquent subprime mortgages. This concern for the performance of the subprime market has actually affected sales although it should not. In reality, the number of actual New Jersey foreclosure homes every month is about 270 out of the total 70,000 homes. There also has been some tightening in mortgage loans underwriting guidelines because of the subprime mortgage problem. Still, the demand is great for these homes with just a little bit hesitation from home buyers, who are wondering whether the time is right to buy a foreclosure property.
Again, the subprime mortgage market experienced considerable positive activity a couple of years ago, thanks primarily to predatory lending practices done by aggressive lenders. Many buyers who were not in the financial position to own homes where approved for mortgage loans. To make matters worse, they even took out adjustable rate mortgages.
By spring, foreclosure listings experts like ForeclosureListingsNationwide.com are hoping that the lukewarm real estate activity will be jumped start due to the low foreclosure home prices; pent-up demands as well as possible decrease in interest rate take control. For April, New Jersey has actually recorded 2560 NODs, 396 NTSs, 4 LISs and 162 REOs. Compared to the last month’s report, the number of New Jersey homes in some stage of foreclosure has decreased by almost 35 percent.
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