It’s an interesting time for real estate in the Cranford/Westfield area of NJ. We are finding ourselves with low inventory and an increasing number of buyers . While prices are still below those of a few years ago, we are seeing an upswing in prices, and an increase in multiple offer situations.
Luckily, interest rates are still below 5%. However, we have indications that interest rates will increase in 2014, and homebuyers should realize that waiting to make the move while mortgage rates are increasing probably doesn’t make sense. As rates increase, the price of the house you can afford will decrease; in fact, as you can see in this chart, a 1% increase in rates will reduce your purchasing power by 10%.
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