June Real Estate Sales
As was widely expected, the Federal Reserve did not change the target range for the federal funds rate – currently set at 2.25 to 2.5 percent – during their June meeting. Although the economy is still performing well due to factors such as low unemployment and solid retail sales, uncertainty remains regarding trade tensions, slowed manufacturing and meek business investments.
• Single Family Closed Sales were down 10.4 percent to 8,115.
• Townhouse-Condo Closed Sales were down 15.5 percent to 2,160.
• Adult Communities Closed Sales were down 5.7 percent to 730.
• Single Family Median Sales Price increased 4.2 percent to $350,000.
• Townhouse-Condo Median Sales Price increased 5.8 percent to $277,500.
• Adult Communities Median Sales Price increased 0.0 percent to $210,000.
In terms of relative balance between buyer and seller interests, residential real estate markets across the country and here in New Jersey are performing well within an economic expansion that will become the longest in U.S. history in July. However, there are signs of a slowing economy. The Federal Reserve considers 2.0 percent a healthy inflation rate, but the U.S. is expected to remain below that this year. The Fed has received pressure from the White House to cut rates in order to spur further economic activity, and the possibility of a rate reduction in 2019 is definitely in play following a string of increases over the last several years.