Individuals standing by on the sidelines waiting for the housing market to cool may have to wait quite a bit longer according to a recent report from Redfin. According to this current report, the median U.S. sales price has climbed 3.2% year-over-year, and the cost for a typical mortgage payment was $2,605 for the week ending July 30th. This represents a 19% increase year-over-year, as mortgage rates continue to range in the 7%-plus range. The housing shortage still does not let up and the inflation rates make home buying a very challenging environment to navigate.
But the high housing prices seem to be going even higher, especially for those not familiar with the cycles of property tax increases. This recent year, most New Jersey townships and counties are raising property taxes, some as high as 11%. This will compound the cost of owning a home even more.
Mortgage applications for the week ending July 28th fell 3% from the prior week. And purchase applications were also down 26% from 2022.
Data from Google indicates that searches for “homes for sale” were flat from the prior month ending July 29th. But they are also down 16% from 2022. This shows a bit of buyer fatigue. Still, the number of buyers touring homes as of July 28th was up 8% for the year as compared with this time last year.
Other metrics from the Redfin report:
The median asking price for newly-listed home was $387,223.
Pending home sales fell 14.4% from 2022.
New listings also fell 21.3% from 2022.
The months supply of inventory came in at 2.9 months.
43.7% of homes went under contract within the first two weeks of coming onto the market, which is up from 42% in 2022.
35.9% of homes sold above their final list price, which is down from 43% in 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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