The median sales price for a home in May 2020 was $284,000. That was up 2.3% from 2019. Now compare that price to the least expensive state, West Virginia, where the average home price is $147,000. In some ways, the West Virginia home has greater access to highways, interstate commerce, and other resources. Now compare it to the mist expensive state. No, it’s not California or New York. It’s Hawaii. That’s right. Hawaii is isolated and everything has to be imported to it, and yet demand for Hawaii properties is off the charts literally, $835,000.
Today the average home value in the US is $347,000.
When the pandemic hit, absolutely no one could have imagined what the impact was going to be upon the real estate market. For instance, in 2021 there were 4.57 million homes sold. That’s a fair number, and yet in 2022 there were 5.95 million homes sold. That’s almost a 20% increase or jump.
At this point, even the experts are shying away from using their expert designation and making estimates and projections that are much less assured.
But demand is still there, even though the price for a home continues to be a hurdle for most buyers and first-time buyers to swallow. And along with the sustained demand coming from buyers creating a competitive environment, some sellers are very reluctant to upgrade or even to move due to their low mortgage rates which are between 2 and 3%.
Right now some of the reports are indicating that monthly rental prices are anticipated to slip, so to speak. But we are not so sure, since inventory shortage and high mortgage rates continue to give landlords greater leverage with renters. On top of all this, high inflation is proving to be an unexpected obstacle for those who are looking to move from renting to buying.
According to Realtor.com, they had projected rents to rise 6.3% in 2023. Still inventory continues to fall off and the National Association of Realtors is projecting further reduction in the number of homes for sale, anticipating them drop by 5% in 2023.
Right now, the National Association of Realtors is anticipating that they will only be 4.2 million homes sold in 2023. This represents the lowest number of homes sold since 2012.
Individuals are looking and hoping for some relief but until builders provide some historic numbers to ease the demand buyers will continue to encroach upon the sparse inventory making it even more difficult for buyers to find a home that will work for them.
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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