July median prices increased again while the number of sales continues to contract. Existing home sales fell 2.2% in July from June 2023. This translates into the annualized rate of a little over 4 million units, according to the National Association of Realtors. In addition to the month-to-month contraction of sales, year-over-year sales also fell by 16.6%.
Fewer sales typically means lower prices but not in this particular market. In July 2023, the median existing home sales price rose nearly 2% to $406,700. As the press release reported, this represents the fourth time that the median sales price crossed the $400,000 mark: June 2023, June 2022 and May 2022. Demand continues to keep prices for most first-time buyers above reach.
Some news on the positive end is that inventory of unsold properties grew by 3.7% from June 2023, reaching 1.11 million.
Still supply continues to be less than half what it was in 2018 and 2019. In September of 2018 in New Jersey, existing homes for sale exceeded 41,000, and then dropped precipitously by 15.7% to 34,624 in 2019. In June 2023 the inventory on the market was 12,975, but we are expecting that number to fall further for July 2023.
The inventory scarcity compounded with higher mortgage rates are not the only reasons why the number of transactions continues to slip. The end inflationary factors affecting actual earnings of potential buyers is leaving less on the table for first-time buyers to put together a reasonable down payment.
According to the National Association of Realtors announcement, first-time buyers accounted for 30% of all sales in July, which increased from 27% in June, with all-cash buyers representing another 26% of all transactions for July, which is the same as it was in June 2023.
The percentage of distressed sales represented just 1% of all sales for July 2023. The Northeast reported that the median existing sales price was $467,500, which is an increase of 5.5% from 2022.
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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