New Jersey's housing market is showing no signs of slowing down



We are not in a bubble, instead we are in a comfortable yet competitive market.

The data is showing a lot of buyer demand, prices are rising, interest rates are rising, home inventories are falling, days on market are falling with the average home sale going under contract in only 36 days. This is a fast market but is really nothing new as it has remained a seller’s market over the past few years.

The medium home price topped over $300,000 for the first time ever, according to Redfin’s chief economist Nela Richardson.

 

Home prices have soared 7.6% this April from April 2017

Starter homes are also harder to find, as most builders and investors are putting their money into higher margin properties, and that’s a challenge forcing more young buyers into the suburbs or into more affordable markets. Wages have also not risen at the same pace as housing prices, making it an even tougher challenge to find the perfect home.

The good news according to the latest US Census Bureau and US Department of Housing & Urban Development Residential Sales Report, the number of single-family building permits are up 7.4% over last year, with hopes of giving buyers more options as we head into 2019.

Today, with the tremendous lack of inventory, a seller can expect a great price on their home as buyers may need to outbid each other, or accept a quick sale at full price as buyers don’t want to rock the boat on negotiating. But in 2019 I would expect new construction to start taking a larger share of the market.

Bottom Line – If you are considering selling your house, you’ll want to beat this new competition to the market to ensure you get the most attention for your listing and gain the best price.

 

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By: The Melton & Partners Real Estate Team