Trends to Track – List price doesn’t equal sales price. It was reported, according to Knock, a national real estate agency, that in 2018, 62% of all homes sold, sold at a price below the original asking price.
This seems to buck the trend from earlier in 2018 when many homes, up to 25% of all homes, were selling at above asking price.
Knock also predicted that three-quarters of all current market listings will sell below their original list prices in the first quarter of 2019.
National migration trends tend to support the growth in the southern markets, as more Boomers downsize and move to warmer climates.
Top markets according to Knock are, Jacksonville, Florida, number 4; New Orleans, number 5; Hartford, number 6; St Louis, number 7.
As is typical, January is one of the best months for buyers to get a bargain in the housing market. Buyers can typically save money due to the slowdown in home price increases and with the spillover of sellers who failed to sell in December looking to nail down a deal. If the cold weather persists, this will also provide buyers with a stronger advantage, as buyer traffic is linked to good weather conditions.
Despite the continued erosion of housing inventory over the last few years, the last three months of 2018 reflected a smaller contraction of inventory of homes for sale on the market from the prior year. According to Trulia, housing inventory contracted by only 4.6% on a year-over-year basis.
Even though overall the housing inventory is declining, Trulia is identifying a number of the more expensive markets posting inventory increases.
In addition to inventory shortages, affordability continues to also be problematic for first-time home buyers. Starter home prices rose by nearly 14% from 2017, reflecting one of the most dramatic rises reported in recent history. According to Trulia, the average starter-home buyer now spends 41% of their income on a monthly mortgage payment. This represents a significant increase even from 2017, when the average home buyer spent just 34.2% of their income on their monthly mortgage payment.
Trulia indicates that many home buyers are dealing with inventory shortages and higher costs as, is reflected in the dwindling number of homes available on the market. According to Trulia’s numbers, home buyers are looking at 24% fewer homes available on the market than there were 5 years ago.
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.