Prices Are LOW, Money Is CHEAP, Rents Are RISING! …Where Are YOU?

“When opportunity knocks, answer the door.”

I’m sure most folks have heard that saying. Well, with regard to the glaring opportunity in the current real estate market, it’s been knocking for a while now!

Here are the facts:

Real estate values are LOW. Unless you’ve been living under a very large, extremely heavy rock, this is no revelation, I’m sure.

Interest rates are historically LOW… aka money is CHEAP.

Due to the the ongoing distressed property/foreclosure debacle, there are many more people in the tenant pool causing more demand for rental properties. And, you guessed it… Rents are on the RISE.

What’s that sound? It sounds like opportunity knocking, no?

If these factors don’t seem like obvious signs of a quality investment scenario & you’re still on the fence, consider the following. According to New Jersey MLS data, 45% of all sales in the condo category for all of Bergen County between July 1, 2011 & February 16, 2012 were all-CASH transactions. For the same period in the 2-to-4 family category, cash purchases accounted for 25% of all closings.

This is a sign that there is a lot of investment money buying these properties, no? These are the folks who know the perfect storm when they see it starting to churn the seas, so to speak… and they jump into the market.

Further, I’m compiling a report on real estate inventory in the single family & condo categories in Bergen County. What I’ve found is that inventory levels have dropped significantly in most towns (this week vs. the same time last year) and average listing prices haven’t been effected anywhere near as much as inventory levels.

A tighter supply makes me think values may begin a turn-around pretty soon, if they haven’t in many areas, already. The point is, we don’t know how long this perfect storm will hang around. But, it’s here right now. So, again… opportunity is knocking… answer the door!

I’m Brian Morgenweck, broker/owner

of Power Realty Group in Bergen County.

Connect with me anytime. (201) 489-3020

I’m here to help.

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