Understanding the new dynamics of the real estate market
Everyone agrees, if you can believe that, that this market is totally different. It’s not only different because of the collapse of available inventory, but it also has these factors weighing on the market:
The cost of inflation
The cost of purchasing a home where home prices have increased 40% in 3 years
The cost of a mortgage
The cost of materials and supplies for new construction
So, it’s no surprise that real estate today is experiencing powerful and dynamic forces it has never had to navigate before.
But to add gasoline to this fire of unaffordability, but there are other factors that are existing within this market that ultimately are going to impact affordability and availability.
Pandemic of Retail Theft
There is a new trend taking place within the retail consumer market: retail theft. Retailers are having to withstand losses like never before, referred to as shrinkage to inventory, due to theft in the range of 0.5% to 1.5%.
In the recent report on CNBC Lowe’s said that it sustained significant losses due to theft and shrinkage skyrocketed from $796 million in fiscal 2021 to $997 million in 2022.
Companies across the board are being terrorized by organized crime gangs that break into stores and steal merchandise. These retailers include Dick’s Sporting Goods, Foot Locker, Macy’s, Walmart, and Target, just to name a few.
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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