The fact remains that inventory of homes for sale continues to erode and homebuilders are still unwilling or unable to keep pace. Recently it was reported that homebuilder permits fell 19% to 1,594 in October from September 2016, according to CohnReznick.
The number of 2016 approvals through October was also down 17% from the first 10 months of 2015. This is creating a scarcity mentality among house hunters and agents. According to New Jersey Realtor, the average price received by a seller is 96.9% average statewide, and for Monmouth and Ocean counties is the same: 96.2%.
+ The report found that 47.4% of October’s permits were for multifamily projects.
+ Contributing factors for the decline were “limited inventory due to stagnant pricing,” and longer permitting reviews slowing approvals.
+ Since July 2015, monthly changes in permits have alternated between gains and declines, the report said, with nine months up and seven months down.
Lock in Loan
§ Buying a home will cost on average $900 more next year based on anticipated jumps in mortgage rates.
§ 2016 mortgage rates aren’t expected to last and average rates could rise as much as half a percent in the next few months.
§ What might that mean in terms of dollars and cents? It would translate into $864 in annual payments on a $250,000 mortgage should rates jump to 4.2% from the 3.7% average on 30-year fixed loans in November.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.