The majority of New Jersey counties have less than 6 months of inventory: the statewide average is at 5.2 months, according to New Jersey Realtor.
The inventory shortage is not showing up in a frenetic rise in home prices, but rather in the number of closed sales and in the percentage of price received.
Single family homes sold skyrocketed from 3,484 in January 2015 to 4,930 in January 2017, representing a 50% rise in just two years. And pending sales for single family homes followed a similar track: 3,865 pending sales for January 2015 rose in January 2017 to 5,360.
The short inventory is also affecting the days on market metrics: in January 2015 the average single family home remained on the market 96 days, but in January 2017, single family homes lasted 88 days on the market, representing an 8.3% drop.
Ocean County has dropped significantly from a 9-month supply to just 6 months; that precipitous drop is just since 2016!
Other high-demand counties such as Hudson have such scarcity that it has just 2.9 months supply.
According to the Otteau Group, Essex, Union, Morris, Middlesex, Bergen and Passaic Counties all have fewer than 5 months of supply.
The bulk of transactions involve properties under $400,000, which points to the entrance of the Millennial homebuyer, who is transitioning from renting to buying without the usual formation of new households. Mortgage before marriage seems to be the recent trend.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.com, 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.