Passaic County, NJ real estate is showing strong signs of recovery.  Last month, real estate sales were up over 7% for sales of existing homes.  The increase in real estate sales was seen in every region of the United States, including Passaic County and Ringwood, due mainly to the first time home buyer tax credit, which was originally set to expire at the end of November, 2009.  Low mortgage rates and low home prices have also been catalysts.

Foreclosures will continue to rise with unemployment, keeping real estate prices from rising in harder hit areas, and home values as a whole are expected to remain flat for some time.

Interest rates are not expected to continue dropping and will most likely head in the opposite direction, expected to hold steady around 5.2%.  According to the Wall Street Journal, Federal Reserve chairman Ben Bernanke himself recently locked in a refinance on his residence, a clear indication that for Ringwood, NJ and surrounding areas, rates just might be as good as they’re going to get.

For now, the data shows that real estate sales are on the rise and will continue to improve as long as the mortgage rates stay low and the tax credit remains in place.  What happens during the latter half of 2010 is up in the air, but for now the good news is far better than the news of a year ago. See my summary post for where Passaic County is as we go into 2010.

For an interesting analysis of the real estate conditions and a forecast of 2010, by CNN Money, click here.

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