At Counsellors Title Agency, we’re observing a dynamic shift in the real estate landscape, particularly in the existing-home market across New Jersey and the broader Northeast. The latest report from the National Association of Realtors (NAR) shows a continued dip in existing-home sales in September, down by 1% from August and marking a 3.5% decrease from this time last year, adjusting to an annual rate of 3.84 million. This trend, while challenging for some in the industry, has the silver lining of slightly boosting inventory levels—good news for buyers as they gain more choices in a competitive market.
In September, for-sale inventory rose to 1.39 million units nationwide, up by 1.5% from August and an impressive 23% increase from a year ago. This increase has brought the months’ supply of unsold inventory up to 4.3 months, from 3.4 months a year prior. Here in the Northeast, however, our region has seen the largest year-over-year drop in existing-home sales, declining by 6.1% from last year, which reflects the continued strain of tight inventory and competitive pricing on prospective buyers.
Despite these sales shifts, there are indicators that affordability may be gradually improving. With the median sales price of an existing home reaching $404,500 in September, up 3% from last year, wage growth is beginning to outpace home price increases. NAR’s Chief Economist Lawrence Yun notes that a balance in price appreciation could open the door for more potential buyers.
Mortgage rates remain a factor. While they are lower than last year, some buyers are pausing to consider market uncertainties, including possible impacts from the upcoming election. With more options available, we anticipate that buyers will be more selective, taking advantage of new opportunities in the inventory.
A closer look at market behaviors reveals some notable trends: homes in September typically stayed on the market for 28 days, a slight increase from the previous months. First-time buyers, who accounted for only 26% of all sales, hit a record low, while all-cash sales represented 30% of transactions—many driven by individual investors or second-home buyers. This trend towards cash purchases underscores the growing influence of investors in the current market climate, particularly in competitive states like New Jersey.
Counsellors Title Agency is here to guide our clients through these evolving market conditions, offering expert insights and title services that help navigate the complexities of today’s real estate transactions. Whether you’re buying, selling, or investing, we’re committed to ensuring a smooth and successful closing process.
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/