Could TARP and the plans proposed by the president Obama and the Congress effect Princeton Homes For Sale?
President Obama’s plans could help Princeton homes for sale; TARP has already had impact on the Princeton real estate including first-time homes buyers, Princeton home sellers and many homeowners.
Princeton real estate homes for sale remained relatively immune to the devastating affects of the economy meltdown with median prices of Princeton homes for sale up and the foreclosures levels are relatively low. This may not continue if further fiscal interventions are not made.
The conditions in Princeton and neighboring towns of Hopewell homes for sale, or for Montgomery Township real estate, where the median prices have already declined.
Even with the median prices of Princeton real estate being up, many homeowners who bought their Princeton homes in the last several years and had to sell now, did so for prices equal or less to what they paid.
This week I discussed with a Princeton economist the impact on the Princeton homes for sale of the President Obama’s plans and the Proposals in the Senate. These ideas would apply to Hopewell real estate and to homes for sale in Montgomery Township. Here are the highlights of this discussion along with my interpretations:
- Many residents of Princeton, Hopewell, West Windsor and Montgomery Township are employed in the financial and related businesses in New York. That’s why Princeton is a great place for people relocating and moving from other areas. It is also why stabilizing financial institutions has critical impact on the Princeton real estate.
- TARP has already helped by infusing money into financial institutions and preventing many local residents from loosing their jobs.
- Had the financial sector on New York been not helped by TARP, Princeton would have not been the relative oasis of housing stability compared to other areas in the country. Employees in the financial sector loosing employment would drive up the foreclosures which so far have been few in the area.
- Various assistance parts of the bailout provisions could help first time Princeton home buyers and as well as many homeowners.
- The Federal program to buy mortgages to drive the mortgage rates to the 4.5% could help first time buyers to be able to afford Princeton homes for sale. It could also help those who’s income has been effected by the pay cuts to refinance and hold on to their homes, preventing rise in foreclosures and further declines in the real estate prices.
- The plan to use TARP to establish a special bank to buy toxic assets would shore up the banks’ balance sheets so they could start lending. Available credit could help both first time Princeton home buyers and those who need to refinance.
- Senate’s idea discussed now to offer 4% fixed 30 year mortgage rates could provide a big boost to Princeton home buyers. As proposed, it would reward those who have good credit history and saved for the down payment on their home in Princeton, Hopewell or Montgomery Township.
- Princeton is not an inexpensive choice for many home buyers. Lowering the mortgage interest rates and the idea of $7500 to $15,000 credit for first time home buyers could make more buyers to come able to afford Princeton homes for sale.
- Assisting first time home buyers could do a lot for the whole spectrum of Princeton homes for sale. When first time home buyers come into the market it has a trickle up affect and triggers more transactions in the higher price ranges.
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