Affordability in Real Estate Market Creates Opportunities for Many

Buyers taking advantage with first-time purchases and trade-ups

EDISON, N.J., July 7 /PRNewswire/ -- Housing affordability is higher in New
Jersey than it has been in years, and buyers are taking advantage.

In the first quarter of 2009, 56 percent of households in New Jersey could
afford to buy an entry level home, compared to 44 percent of households a year
ago, according to the NATIONAL ASSOCIATION OF REALTORS(R) (NAR).

Major contributors to the higher rate of affordability are lower median home
prices, which have declined from $308,600 in the first quarter of 2008 in New
Jersey to $299,800, in the first quarter of this year, and record-low interest
rates. According to NAR, in the first quarter of 2009, the average interest
rate in New Jersey was 5.14 percent, compared to 6.02 percent in first quarter
of 2008, a decrease of almost one full percentage point.

"Rising affordability means a lot of people who maybe couldn't afford to
purchase a home in recent years, can now take advantage of the opportunities
presented by today's market conditions," said New Jersey Association of
REALTORS(R) (NJAR(R)) 2009 President Diane Dilzell. "Financially stable
buyers in many situations are finding themselves in a great position to enter
the market and find a home that fits their budget."

First-time buyers have a tremendous chance to take advantage of affordable
homes, especially with incentives available like the $8,000 federal tax credit
for anyone who hasn't owned a home in three years. Also, for people who have
dreamed of a bigger home or a move to a certain neighborhood they might have
previously thought was out of their range, opportunities exist to trade-up.

"The high affordability in New Jersey will also be advantageous for sellers,"
said Dilzell. "As affordability remains high, demand will increase, and
inventory will drop. It's a condition that will help drive the real estate
market to a healthy equilibrium."

Paired with other buyer incentives, like the first-time home buyer tax credit
of up to $8,000, the high affordability in New Jersey creates a unique
opportunity for buyers considering entering the real estate market.

Talk to a REALTOR(R) about conditions in your local market. For more
information on housing affordability, or to find out more about taking
advantage of today's real estate market in New Jersey, visit
www.REALstoryNJ.com.

The New Jersey Association of REALTORS(R), with approximately 50,000
REALTOR(R) and REALTOR-ASSOCIATE(R) members, is one of the largest trade
organizations in the state. NJAR(R)'s membership is comprised of real estate
professionals who subscribe to a strict code of ethics and are members of the
national and local REALTOR(R) organizations. As the leading advocate for the
real estate industry and private property rights in New Jersey, NJAR(R) is
committed to protecting the dream of homeownership. For more information,
please visit www.njar.com.

SOURCE The New Jersey Association of REALTORS(R)

Lauren Castellano of The New Jersey Association of REALTORS(R),
+1-732-494-4709, LCastellano@njar.com