Purchase contracts reported for September 2016 mark the strongest since 2005.
According to the Otteau Group, September contract purchases by homebuyers exceeded the same month in the prior year for the 25th consecutive month.
The month reflects a 12% increase over September 2015, which compounds the 15% increase recorded for September of 2015, raising home sales in New Jersey by 28% over the past 2 years, the highest number of purchase contracts recorded in the month of September of the past 11 years.
The year-to-date figures for home purchases in 2016 have jumped 14%.
According to the Otteau report, the increase has been largely concentrated in the lower-priced home category, representing signs that the first-time ‘Millennial’ buyers are transitioning from renting to homeownership.
The higher-end homes in New Jersey (home sales priced at $2,500,000 and above) have fallen by 4% in 2016.
The report attributes these trends to:
The greater number of younger-age first home buyers
Trade-down purchases by older-age empty-nesters
Relaxed mortgage lending standards
Other Facts and Stats
The supply of homes available for sale continues to fall – by nearly 6,000 (-11%)
Low inventory limits options available to home buyers
On a comparative basis, 2016 has 25,000 (-34%) fewer homes on the market compared to the cyclical high in 2011
Unsold inventory equates to 5.4 months of sales, lower than one year ago when it was 6.7 months
The majority (81%) of New Jersey’s 21 counties have less than 8.0 months of supply
Hudson County has the strongest market condition with just 3.2 months of supply, followed by Union, Essex, Morris, Middlesex and Somerset Counties, which all have fewer than 4.5 months of supply
Unsold inventory is concentrated in the southern portion of the state: Cape May (9.2 months), Salem (10.1 months), Cumberland (10.3 months) and Atlantic (10.5 months)
