Where is the New Jersey Home Market Headed?

People with an eye on the economy always want to know where the housing market is headed—whether they’re buying a home or not. Fortune magazine reported that when David Blitzer, the chairman of Standard and Poor’s Index Committee, was asked to describe (in one word) what the 2015 market would look like, he replied “Mysterious.” 

If the housing market leaves experts like Blitzer scratching their heads, what hope do the rest of us mere mortals have—and what should we do about it? 

Fortune did go on to identify four trends that they see developing in the housing market:

The demographic wave of Millennials will help boost prices.

Instead of depending on Baby Boomers, the market will be driven by Millennials—the largest demographic in the country.

Young people will continue to demand housing where it’s tough to build.

One reason the market has been somewhat flat is that Millennials generally have preferred to live where housing is expensive and where building is difficult.

Mortgage rates will rise.

Many economists are expecting that 2015 will be the year rates rise in earnest, citing an improving domestic economy and a lack of stimulus from the Federal Reserve.

Home price increases will decelerate, but affordability will decline.

Economists polled by Fortune almost unanimously predicted that home values would continue to rise, but even slower than they did this year. 

If the good folks at Fortune are right, what does that mean for someone who is considering buying a home in New Jersey this year? The two trends from above that will most likely affect potential home buyers in New Jersey right now are the ones pertaining to mortgage rates and home prices. It would be irresponsible to sound a note of alarm about either one, but one thing seems pretty clear: If you’re waiting for mortgage rates to drop more or for housing prices to tumble, that’s probably not going to happen. Rates are still very reasonable, so now is a good time to arrange a loan. And while housing prices may not see a big uptick in pricing, they are probably not headed south anytime soon. 

Another thing to consider is location. There’s a famous quote (attributed to both Mark Twain and Will Rogers) that says: “Buy land, they aren’t making any more of it.” Regardless of who actually said it, the fact is that land that is yet to be developed will only be more expensive—and likely farther away from the things you want to be near. All of the Country Classics communities are in extremely desirable locations and offer great schools and easy access to the kind of amenities you want near your home. 

Exactly where is the New Jersey housing market headed? That’s still a bit of a mystery, but now is still a great time to find the home of your dreams in the Garden State!