Calling all Morris Plains Home Owners.  The current inventory of homes in Morris Plains not including condos in Foxwoods is down to 24.  I have not seen it this low all year.   The shortage of entry level homes in Morris Plains is shocking.  There are only 3 priced in the mid 400′s and 5 priced between 300 and 400,000.00.  One house has been on the market less then a week and there was a full price offer on it and then someone offered more.  The balance of the market is homes priced over 499 and these are the homes that are not moving.  This is the perfect time for a homeowner that has a smaller home and now needs a larger one to get into the market.  Don’t believe me lets look at the facts.

1.  The Federal Bank is making noise that they intend to keep interest rates low. 

2.  The Senate has okayed the extension of the first time home buyers credit and may extend it to home owners as well and it looks like the House will too.   So now current home owners who are selling get the benefit of buyers being able to pay more on the purchase of their home and then get a credit when they go on to buy their next house.  God Bless America.

3.  The demand for affordable homes is much higher in town.  It is ECO 101 baby.  Low supply high demand = higher prices.  Mean while the remaining 16 homes in Morris Plains are priced at 499 or higher.  High Supply low demand = lower prices.  

The cost ratio between the entry level home market and the mid to higher priced home has never been lower.  It is the perfect time for a family in Morris Plains to sell their entry level home at an attractive price and move to a larger crib.

When home prices where going up 5 percent a year a home owner could sell the house he paid 300,000 after 5 years for 375.   A home that was worth 500,000 5 years earlier would be worth 625,000 his additional cost ratio would be 50,000 dollars.  Now a 300,000 dollar house is still worth 300,000 and a 500,000 dollar home 5 years ago is now worth 450, his additional cost ratio is ZERO

I believe that in the last week a nice, in good repair 3 bedroom 1.5 baths home has probably moved up in value by 10 to 15,000 dollars.  This will not last forever interest rates will go higher.  The economy is getting better.  The fact that Warren Buffet bought a railroad for 34 billion tells it all.  What ships on railroads?  They ship goods. What do people buy? They buy goods.   So the fact that Warren Buffet thinks people will be buying more goods to make his 34 billion look like a good investment well that is evidence that people a lot smarter then me think the economy is getting better and demand for larger homes will go up.

This is the opportunity of a lifetime.  As Grandmere Sittmann used to say “When opportunity knocks on your front door, don’t be out back picking four leaf clovers.”

Thanks for Reading Morris Plains Homes

Bob