Inflation is taking a bite out of everyone’s wallet. We’re beginning to see that the stampede of homebuyers that were birthed out of the pandemic is slowing down to a trot.
Some individuals are thinking that this is the end of the housing boom, but rather this is a adjustment to a more stable and liquid market. With the increase in the 30-year fixed-rate mortgage to over 5%, the rush to buy and spend has come back down to earth. In some areas the days on market continue to fall but sellers are no longer the seeing the kind of frenetic bidding wars and are even lowering prices in some cases.
Even though recently mortgage applications have fallen to a 22-year low, the available inventory on the market still is in the neighborhood of two months or under. In some cases, it is between 1 month and 1 and a half months.
The average and median price for a home sold is still climbing by double digits on a year-to-year basis. The average price for a single-family home in New Jersey increased by nearly $100,000 year-over-year according to the New Jersey Realtors. The average home price in the first quarter of 2021 was $500,000. The average home price for a single-family home in the first quarter of 2020 was $404,000. According to the New Jersey Realtor, the average single-family home price in April 2022 sold for $583,000, which is 10% more than the $529,000 figure reported for 2021.
And builders continue to be encouraged and see strong demand coming from the market. The issues of supply chain shortages and lumber cost are surely impacting the cost of building new homes, but many of these homes are being built in regions of the country Warehousing is generally more affordable.
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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