The REal Market Report – September 2022

The REal Report – September 2022

Nationally, median household income has failed to keep pace with increasing mortgage payments, with the costs of buying a home about 80% more expensive now than they were just three summers ago, according to the National Association of REALTORS® (NAR).

As more and more prospective buyers find their home purchase plans delayed, many are turning to the rental market, where competition has intensified due to increased demand.

• Single Family Median Sales Price increased 11.5 percent to $630,000.

• Townhouse-Condo Median Sales Price increased 6.4 percent to $415,000.

• Adult Communities Median Sales Price increased 1.7 percent to $427,000.

At a time of year when homebuying activity is typically very strong, soaring homeownership costs have caused home sales to decline nationwide for the fifth consecutive month, with existing-home sales falling 5.4% month-to-month and 14.2% year-over-year as of the last measure, according to NAR.

The bright spot. Inventory of existing homes has continued to climb this summer, with 1.26 million homes available at the beginning of July, equivalent to a 3 months’ supply. And despite the summer slowdown, homes are still selling quickly, with the typical home staying on market an average of 14 days and NJ is not the exception so, it is still a good sellers’ market.

Just to illustrate how things have changed in the current homebuying market, check out this:

In January 2022, 30-year fixed rates were around 3.25%, a $400,000 loan had a monthly payment of $1,740.83.  September 2022 rates are closing in on 6%. The same $400,000 loan amount will now have a payment of $2,398.20, which is an increase of $657.37 monthly (over 27% higher).

North New Jersey is still a bright spot as homes are still selling at a good pace, especially if marketed effectively, priced right, and presented competently.

Remember the 3 P’s in Real Estate, if you or anybody you know and care about is looking to market or purchase real estate we’ll be happy to have a consultation, obviously with no obligation whatsoever