Tuesday, February 09, 2010

The Starter Home Boom

As we start this new decade with rising debt, a smokey business environment and no direction from washington, its safe to assume it will be another year or two before we get out of this great recession.

That being said there is tremendous demand for starter homes, more and more young couples and families are buying into their American dream. If they still have a job, have saved enough for a hefty down payment they are making offers.

Demographics have dictacted every countries rise and falls in business cycles, this one is no different. For real estate developers in urban areas like hoboken and jersey city we are seeing a rise in housing permits and parcels of land being swept up. "We will build this year and sell into 2011 and 2012" -Ardan House Developer said of 3121 central ave., Union City, NJ.

Interest rates are still low and will remain at these levels for the next few months. Prices have been dropped as far as they will go in most places and the lookout for new and fresh inventory has started. So will demographics from age 25-32 save our country and help us out of recession? No one has a cyrstal ball but its safe to assume with real demand picking up, we will start to see signs of improvement in the next 2-3 years.

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