The squeeze is on, the housing market doesn’t seem to be getting a break from any direction. Rents continued to be rising at unmanageable rates. According to Zillow the median rent in the state of New Jersey is $2,500 per month, that is just $100 higher from 2023. According to Zillow, New Jersey’s median rent of $2,500 is significantly higher than the national median rent, which is $2,000 a month.
According to a recent Harvard study on housing, it estimated that 12.1 million American households spend more than half their income on rent and utilities. Traditionally, it has been a healthy estimate for a household to spend 30% of its income on housing. But the same Harvard study shows that a total of 22.4 million households are spending more than 30% of their income on rent and utilities. According to some articles, the experts, the people who usually tell us something that we don’t know, are projecting that the housing market is going to reverse its trajectory, and that inventory and mortgage rates are both going to come more in line with traditional levels. But they also missed New Jersey’s housing price increases for the year of 2023.
According to recent market reports, the average sale price for a single-family home in New Jersey increased in 2023 by 16.2%, translating into the average sale price of $663,000. On top of that, inventory has fallen by another 24.2% from December 2022. That leaves the monthly supply at a 2.4-month supply level. Inventory supplies, though they have fallen for the last 2 years, have ranged from approximately 15,200 to 11,500. Aside from the decrease, the range of inventory has been settling in this range.
And the shift from virtual workers to office workers continues to impact workers, causing them to buy and rent within a radius of acceptable commutation time.
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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