According to a recent piece in NJ.com, home prices are continuing to rise in New Jersey; home prices rose an average of 12% in 2020 and 16% in 2021. While this is ultimately a positive development for New Jersey homeowners, it also makes buying a home in New Jersey a bigger challenge. The pros and cons of increased property values obviously depend on whether you’re buying or selling, but there are other things to consider as well.
Some Increased Property Value Pros And Cons
For starters, while homeowners are seeing more value added to their home when they sell, there is the matter of property taxes…especially in the state with the highest property taxes in the nation. As property values rise, so do property tax payments, and this is something they are going to have to budget for.
However, the pros outweigh the cons in this regard. While a homeowner’s property taxes may be increasing, the higher value of the home means more equity, and more possibilities to use a home equity loan if they are not yet ready to sell. A homeowner can take that dream vacation, make a needed repair or improvement to the home, or have extra money to pay for their kids’ education. Homeowners also enjoy the benefit of possibly being able to cancel their mortgage insurance. If the remaining loan amount is a certain percentage of the home’s appraised value, the mortgage insurance can be cancelled, reducing the monthly mortgage payment.
The final part of these pros and cons of increased property values, increased property value means that the homeowner will be able to sell the home at some point and make a significant profit, ideal for moving into a smaller place as the kids are grown and leaving the nest.
But what about for buyers? Rising home prices make finding an affordable home tougher…but as the pandemic wanes, the rate of increase in property values has significantly slowed. So it still may be a good time to invest in a home in New Jersey if you’re financially ready. It’s not worth it in the long run hoping that prices will drop if the interest rate moves up in that time.
Even with the increased prices, a home is still a solid investment in the long term, and with the right Realtor, you can still find an affordable home in the area that is ideal for you, your family, and your budget.
Whether you are buying or selling a home in the Marlton area of South Jersey, let Gina Ziegler and her team be your guide! We can help you find your dream home here, or find the right buyer for your existing home…and we have the experience and knowledge of the region to truly get you the best results, as well as helping you make decisions based on the pros and cons of increased property values in the region. Click here to make an appointment today!
