New Jersey Market Update July 2023
Temperatures are heating up, yet the U.S. housing market remains cooler than usual for this time of year due to a combination of low inventory and higher borrowing costs, which have restricted market activity going into the summer homebuying season. According to the latest data from the National Association of REALTORS® (NAR), national existing-home sales climbed 0.2% from the previous month but were down 20.4% compared to the same time last year, as fluctuating mortgage rates and a near all-time low level of inventory continue to influence home sales.
1. Mortgage Rates
Experience Nearly Doubled Increase: In July of 2022, mortgage rates fell around 5.7%. Now, rates have surged to 7.60%.
2. Sellers Begin to Make a Gradual Return
In June 2023, the number of property listings in New Jersey substantially increased from previous months. This number of listings, however, is still far lower than that of June 2022.
3. Extended Time on the Market
The average time a New Jersey home stays on the market rose to 41 days, seven days longer than the previous year.
4. New Buyers Entering the Market
There’s a strong demand for homes across various demographics. Millennials are in their prime buying years. As a result, there’s still a limited amount of inventory available. If you are in a market where home prices are still high, this might be a good time to sell a house in New Jersey. You should sell your house in the following circumstances: Before the mortgage rates touch record highs, you need to upsize or downsize, or you need to relocate.
5. Limited Supply in July 2023
The available supply of homes stands at just 2.6 months, indicating a scarcity of inventory. This shortage drives many buyers to compete by bidding over the listing price. Based on the principles of supply and demand, current predictions suggest that home prices will remain stable for the time being. Here are all the stats in Bergen County: