According to the National Association of Realtors October sales of Previously listed homes fell 5.9% from the prior month.
The rise in interest rates as it hovers around 7%, and the scarcity of inventory are having its effect upon the total sales. Considering these two factors, the adjusted annualized projected sales for the year stand at 4.4 million units. This represents a 28.4% reduction over the same. In 2021. According to the National Association of Realtors right now there’s a 3.3-month supply of homes on the market, which is higher than it had been but still half of what was once considered normal.
One benchmark figure, the median price of an existing home in October was $379,000, which represents a 6.6 increase from 2021. Though the price gains have slowed down from the double digits, the high inflation rate and the high mortgage rates are squeezing buyers for every nickel they have.
In some markets, there are still multiple buyers bidding on properties, but right now there is also a lessening of demand calling for 20% of homes listed to have their prices reduced from the original listed price.
According to the recent report, 24% of homes on the market received an offer above the asking price, And went into contract within 21 days, which is up from the 19 days reported in September. Still the market is hot and according to the National Association of Realtors 64% of homes sold in October 2022 were on the market for less than a month.
This continues to make it more difficult for first time buyers who represent in October just 28% of all sales, down from 29% in 2021. Based upon prior months in prior years, first time buyers typically make up 20% of all home purchases.
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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