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One thing is for sure: there is no sure. Inventory shortages, higher mortgage rates, inflation, and a whole lot of uncertainty is impacting this market on a daily basis! Right now, there is a redirect of a certain percent of buyers due to the accelerated prices over the last two-and-a-half years. They are being forced to wait to buy and rent in the meantime. Home prices are still going higher, with present prices up by 20% year-over-year, and with the interest rates doubling in the past 12 months, would-be buyers are hamstrung. Now interest rates have bounced from 3.29% at the beginning of 2022 to 5.57% where they are now. Buyers need to have their battle plan ready to go, and close quickly.

What should buyers be looking at? When the days on market begin to slow down and when the percent of price received moves back to normal. Another metric to keep in mind is the trend of prices for single-family homes: in New Jersey, the average price increase year-over-year for a single-family home increased by 11%. I use the word just, because in Monmouth County it was just 8% this past March.

Other Terms to Understand
Average Sales Price – The average price paid for all properties during the specific month.
Balanced Market – When neither sellers nor buyers see that the prices and inventory balanced.
The Buyer’s Market – When sellers have fewer interested buyers who are willing to pay more than the list price. When buyers see the days on market exceeding 50 days, it is a buyer’s market. In March, the days on market (DOM) for a single-family home fell to 39 days from 48 days in 2021.
Days on Market (DOM) – The higher DOM, the less demand for properties. The lower the DOM, the greater the demand and competition for homes. The average DOM back in September 2018 was 63 days. That’s ancient history now.
Inventory – The number of homes for sale indicates that a hose will sell quickly, keeping the average price higher. The average sale price for a single-family in September 2018 was $396,000; in March of 2022, the average price for a single-family was $562,000
Price Discount – This number is usually reflected in the percent of price received: in 2022, that percentage was 102.7% of the list price of a property. Compare that to September 2018 when the percent of price received was 98.7%.
Seller’s Market – This market is characterized by smaller or decreasing inventories and short DOM.

What Buyers Need to Know in this Market
Condition of the Home – Does the home need a lot of renovation? Does it have strong curb appeal and are its appliances and kitchen new or upgraded?
Contingencies – Certain stipulations on behalf of the seller or buyer impacting the sale.
Location – A home with access to transportation, good schools, highways, shopping and recreation are usually considered good features.
Interest Rates – The interest rates in any market will impact the number of buyers and sellers. Right now, rates are higher than they have been in over 3 years. Also, because of the weakening economy, crime rates are coming into play.
Season – Historically, May is the best month to sell a home in New Jersey.