The most recent report from Redfin is that the median sale price of a home domestically hit an all-time high of $394,000 during the first week ending June 9th.
Part of it might be attributed to the easing of mortgage rates down to approximately 6.5%, but demand for homes is still very robust.
In the pandemic hotspots, including Austin, Texas, Fort Worth, and Portland, Oregon prices are starting to see a little softness.
Inflation is surely taking a toll on this market, but demand for homes is still unrelenting. If mortgage rates fall to below 6% within this quarter, housing prices will be sure to surge ahead. The numbers show that demand for purchase applications are up 9% week-over-week, and new listings have jumped 7.8% from 2023.
In some other markets we continue to see the number of people paying above list price is significantly slowing, and those properties that are reducing their price are increasing in percentage.
New Jersey Real Estate
In summary, more sellers are being forced to cut prices to attract buyers as the housing market cools. The real estate market is experiencing a notable shift as more sellers are cutting prices to attract buyers, according to a recent report by Redfin.
Key Points
■ Rising Price Cuts: The percentage of homes with price cuts has steadily increased throughout 2024, reaching 6.4% over the past month, the highest level since November 2022.
■ Falling Asking Prices: For the first time in months, asking prices have dipped, although list prices and sale prices remain near record highs.
■ Increased Inventory: Active listings are up 15% compared to a year ago, giving buyers more choices
New Jersey’s Market
■ Median Sales Price: As of May 2024, the median sales price for all residential properties in New Jersey is $536,200.
■ Mortgage Rates: The current 30-year fixed mortgage rate in New Jersey is approximately 6.95% as of June 13, 2024.
■ Inventory Levels: The total inventory of homes in New Jersey remains constrained, with about 15,455 properties available as of early 2024, a decrease from previous years.
■ Price Appreciation: Home prices in New Jersey have seen a robust 9.0% increase over the past year, reflecting high demand and low inventory.
■ While asking prices have fallen slightly for the first time in months, median list prices and sale prices are still near record highs.
■ However, affordability remains a major challenge for many buyers as median list prices have risen nearly 30% or over $100,000 in just the past four years.
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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