Excluding many of the major COVID-19 hotspots, buyers appear to be ready, willing and more than able to jump back into the real estate market this past May. Key, House, House Keys, Home, Estate  

Nationally, pending home sales surged by 44.3% in May in comparison with April 2020, according to the National Association of Realtors.

 

The pandemic still appears to have had slight effect upon the pending home sales, which came in at 5.1% lower than May 2019.

Since the average 30-year fixed mortgage rate came in at 3.2%, buyers were very anxious about locking in those mortgage rates.

The 44.3% jump in May pending sales represents the largest single one-month jump since 2001.


This kind of activity places greater pressure on the total overall market due to the fact that inventory is at historic lows in the majority of the nation’s real estate markets.The spiking sales is reflective of the fact that buyers were scoping-out properties and potential homes through the virtual set-ups that agents had provided and video open houses.

Agents are continuing to hope that new construction will catch up to the extreme buyer demand that has been ongoing for the last 2 years.

In New Jersey most markets throughout the state have seen inventories drop anywhere from 19 to 35% over the last 12 months. This is not only unhealthy but creates an unsustainable price point for the overall market. Pending home sales in the Northeast jumped 44.4% month-over-month but were down by 33.2% from 2019 levels.

 

Fortunately for the home buyers, some mortgage rates for the 30-year fixed mortgage came down to under 3%, making buyers even more anxious about making that home purchase at this time.

New construction sales increased in the month of May by 17% in comparison to April 2020, and were 13% higher than 2019. It appears that builders are encountering stronger than usual demand from potential buyers seeking to leave those heavily populated regions, and are able to get higher prices for their product.

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.

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