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Even though there is more and more foreclosed home for sale in New Jersey, there are not enough buyers or investors. This will definitely hurt the real estate market to say the least but also the economy of the state. Some of the experts from the industry has warned that New Jersey is heading towards a period of housing market instability, which had made a substantial jump way back in 2005 and is likely to jump again in 2008.
According to various statistics forwarded by state departments, the Sheriff’s office and foreclosure data services, New Jersey homeowners were served a high number of lis pendens in 2007 and this shows an increase of 44% since 2005. In the 3rd quarter, the number rose to 3,577 in the third quarter as compared to 2,486 in 2006.
In different parts or counties of New Jersey, there were many more foreclosures by state as a result of which the home prices shot up during the second quarter of 2007. There was also a drop of 11.8% in the prices in the latter part of the year but this is being seen as a temporary phase and is expected to again rise in the early part of 2008.
The rate of New Jersey foreclosure homes on the other hand has been increasing at a steady rate, which is the exact reason why experts believe that instability is almost inevitable. The inventory rate of foreclosed homes in NJ has climbed up to almost 1.89%, which is the second highest rate ever recorded since the 1.90% benchmark in 2002. If it moves at the current rate then in a few years from now, New Jersey will become a ghost town with deserted streets adding to the eyesore.
