The New Jersey market is super strong. Sales of single family home surged forward by 7.9%. What is another good sign is that the percent of price received was calculated to be 98.5%. Also, inventory appears to be settling in the 6 month rage, with July’s figures coming in at 5.4 month’s supply, with 37,633 on the market. And can you believe that the adult community market rocketed forward with median sales prices increasing 16.7% to $210,000?
New Jersey Realtor website reported: “Housing price bubble chatter has increased this summer, as market observers attempt to predict the next residential real estate shift. It is too early to predict a change from higher prices and lower inventory, but the common markers that caused the last housing cool-down are present. Wages are up but not at the same pace as home prices, leading to the kind of affordability concerns that can cause fewer sales at lower prices. At the same time, demand is still outpacing what is available for sale in many markets.
- Single Family Closed Sales were up 7.9% to 8,445.
- Townhouse-Condo Closed Sales were up 5.2% to 2,335.
- Adult Communities Closed Sales were down 2.0% to 698.
- Single Family Median Sales Price increased 5.1% to $344,875.
- Townhouse-Condo Median Sales Price increased 3.6% to $269,450.
- Adult Communities Median Sales Price increased 16.7% to $210,000.
Consumer spending on home goods and renovations are up, and more people are entering the workforce. Employed people spending money is good for the housing market. Meanwhile, GDP growth was 4.1% in the second quarter, the strongest showing since 2014. Housing starts are down, but that is more reflective of low supply than anything else. With a growing economy, so lid lending practices and the potential for improved inventory from new listing and building activity, market balance is more likely than a bubble