NJ Market Update: 2023 Recap And 2024 Forecast
As we step into 2024 and look back at 2023, it's clear that the real estate market is at a turning point. The challenges of last year, particularly soaring interest rates, left both buyers and sellers navigating a complex landscape. However, the year concluded on an optimistic note with interest rates dropping for nine consecutive weeks. What can we expect in 2024? Let's unravel the trends and forecasts that may guide your decisions in today's ever-evolving housing market.
What to expect in January
According to economists, the first quarter of 2024 will likely be a continuation of the subdued home sales and moderate price escalations experienced last year. Rates are not expected to decrease drastically in the coming months. However, if the trend of rates cooling towards the end of 2023 continues in 2024, as predicted by some experts, the market activity should increase in response.
For Home Sellers
The current market still favors sellers, with demand surpassing supply. As per September 2023 data, active inventory decreased by 26.5% YoY, and median sales prices increased by 9.7% YoY.
Selling in the new year can lock in New Jersey's high home prices, and you can expect a quick sale at or above your asking price, provided you're working with a skilled agent who can help you determine a fair market value price. In addition, with rates dropping to 7.35% in November, mortgage demand is on the rise. The combination of easing inflation and stabilized rates is likely to amplify interest among prospective homebuyers.
For Home Buyers
Purchasing a home now may spare you from a bidding war later. Many buyers are waiting for mortgage rates to drop back down to historic lows of 3%, however, they'll be waiting a long time. The only indication that we'll see such low rates again is if there's a catastrophic event in the market. Keep in mind that refinancing is always an option and something you should discuss with an experienced realtor and lender. Connect with our sales team to explore your options and our expert lender network.
For buyers concerned about inventory - don't give up on hope in the new year. Sellers who stayed on the sidelines in 2023 are expected to re-enter the market, particularly individuals compelled by new job opportunities or seeking more affordable living arrangements. Merideth Whitney, known as "The Oracle of Wall Street" by Bloomberg, foresees a potential addition of up to 30 million housing units as baby boomers looking to downsize contribute to the housing inventory.
Personalized Advice When You Need It
If you're thinking about buying or selling, it's important to know what the experts are forecasting for the future of the housing market. When you're in the know about what's ahead, you can make the most informed decision possible. Much like weather forecasts, housing market predictions, though rooted in data, lack absolute certainty. To discuss the dynamics of the current real estate market, contact Christina Gibbons at 917.837.8853