According to the US Census Bureau, approximately 15% of American households, or 6 million people, are behind on rent moving into the fall of 2022. New Jersey happens to be one of those states which is reported to have lagging payments becoming more problematic.
The net effect of this super-hot real estate market for the last two and a half years is how higher home values have driven rents up to new highs as well. Compounding the cost of rent and cost of purchasing a new home, inflation has begun to take a major bite out of American budgets, where many renters are finding themselves behind on rent. The top three states where renters are behind on their rent payments are South Dakota, Alabama and New Jersey, where in the Garden State according to myelistening.com 24% of renters are behind on their monthly obligations.
The trajectory of median prices for new listings reflects an increase in price by 13.3% over 2021. With the significant increase in mortgage rates, especially for the 30-year fixed rate mortgage, there is less affordability, therefore fewer buyers jumping into this still very hot market. Notwithstanding, the September median price was $23,000 less than that of June 2022, which was an all-time high of $450,000.
Still, the inventory shortage continues to wreak havoc with many of the potential buyers in this market. Compared with this time in 2021, inventory is 15% less.
According to the National Association of Realtors, homes spent an additional 7 Days on the market as compared to 2021.
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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