It also appears that the demand for homes is still there but the price appreciation is not. Some of this can be attributed to the fact that the economy in New Jersey has basically flatlined for about a decade. In addition to that, taxes on real estate had moved up significantly.
Another area where there are shifts is found in the inventory of homes for sale.
■ In September 2011 the number of homes single-family homes listed for sale was 56,092
■ In October 2017 that number was dramatically lower at 36,543
In some parts of the country, they are beginning to see sluggish signs of growth. As the economy continues to gain momentum and housing inventory remains reduced, demand for homes will continue to rise, ultimately pushing prices higher. The fact that home prices are not skyrocketing is a very healthy sign of a good economy.
Since it’s obvious that home prices are not going down, and wages – especially blue-collar wages – are getting stronger, many potential buyers are stepping up to buy.
In addition, another factor supporting this market is the relatively low mortgage rates that are giving first-time buyers an opportunity to jump into this market.
Credit scores for individuals are also on the rise, giving individuals a better crack at offering a winning bid for a house. According to the Federal Reserve survey, 60% of newly originated mortgages have gone to those with a credit core score of 760 or above. Back when the market crashed that figure was 30% lower. Credit is still tight but credit is available.
ABOUT COUNSELLORS TITLE AGENCY
Since 1996, Counsellors Title Agency has provided swift, proven and knowledgeable title insurance settlement and search expertise for thousands of New Jersey’s attorneys, loan officers, Realtors, borrowers and purchasers. CTA’s detail-oriented team of professionals streamlines the complexities of a real estate transaction to make each one stress and glitch-free.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.