The spring 2023 housing market, as it is taking shape, is still unlike any other real estate market: interest rates are still high, with the current average interest rate for the benchmark 30-year fixed mortgage at 7.08%, the average number of homes for sale is down over 20% year-over-year; and the average sales price in New Jersey is at $583,000; buyers are still looking, but probably with a lot less to put down.
Here is a quick sample of the average down payment for the top 20 states:
Rhode Island $65,817
DC $63,537
Hawaii $51,499
Kentucky $44,250
Maryland $43,500
Alaska $36,738
Delaware $36,500
New York $34,998
Tennessee $34,975
California $34,500
Arizona $34,488
Oklahoma $33,525
Indiana $32,900
Pennsylvania $32,136
Massachusetts $30,025
Kansas $30,004
Minnesota $29,999
New Jersey $29,500
Missouri $28,963
North Dakota $28,900
New Hampshire $28,760
Though mortgage rates and prices are still high, the shortage of available homes, plus the inability of builders to close the gaps, are making homebuying a high-stakes business.
There are still bidding wars, but not like we saw back in the early days of the pandemic.
In September of 2018, closed sales for the state of New Jersey came in at roughly 6,600 – this April it was reported to be 4,100. That’s down by about a third. For many in this market, it’s been ‘slim-pickins’ – still, homes are coming onto the market, but not in the numbers most are accustomed to working with.
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.
Connect with Ralph on LinkedIn: https://www.linkedin.com/in/ralphaponte/