Sale, Sold, Hand, Signature, House, PurchaseJuly home sales surged by 24.72% year-over-year.

Obviously the Chinese virus, resulting in the worldwide pandemic, held back much of the classic and traditional spring home buying season, squeezing a riot of home buyers into the market, driving transactions and higher prices.

Additionally, the median price of a home sold in the month of July grew by 8.5% on a year-to-year basis, translating into a record $304,100.

In addition, prices for existing homes purchased increased by 8.7%, as compared with 2019, representing the largest monthly increase in the history of the National Association of Realtors’ survey, dating back to 1968.

Inventory, and in this case the historic shortage of available homes for sale, obviously, had a positive impact upon the 8.7% average price increase year-over-year. Inventory shortages continues to be the single largest factor holding this market fact from escalating into realms of overvaluation as in 2006.

Inventory fell on a national basis by 21.1%, leaving just 1.5 million homes for sale at the end of July. This inventory level creates a market-goldmine, as Realtors are left scrambling for sellers to satisfy the huge fire demand. According to the National Realtors Association, this level of inventory marks the lowest supply since the association began tracking such metrics back in 1982.

The enormous buyer demand is being further fueled by the record and historic low interest rates now being offered. The low interest rates in some ways are artificially giving buyers additional buying power, thus fueling the increase in the median and average prices for homes.

This market presents, for the first time in many years, a perfect storm in that all potential aspects of the market, which include low interest rates, inventory shortages, significant pent-up buyer demand and now a recovering economy, are contributing to a higher than average return on investment dollars spent.

The icing on the cake could be looked upon as the highest home builder sentiment recorded in the 35-year history of the National Association of Homebuilders, hitting a 35-year high.

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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