Here’s How the Real Estate Market Will Look in the Coming Months
With the summer season coming up and many homeowners looking to sell or to acquire properties, it is important to consider how the market currently is and how it will change over the coming months in order to get the best possible outcome for yourself and your home. Here’s how the NJ real estate market will change over the coming months, so you can know what to expect.
The Rise of Mortgage Rates:
Over the last few years, the Federal Reserve has been combating inflation by raising the national interest rate, which in turn raises the amount of mortgage and loan rates, discouraging people from taking out such loans. In turn, this will lead to less money being taken out of the economy, leading to a decrease, hopefully, in the national interest rate. However, after viewing how the interest rate has been increasing in the last year, it seems unlikely that this will happen, leaving it open for the interest rate to increase and thus, mortgages and loans as well. So if you’re looking to take out that one mortgage or loan, it’s probably best if you didn’t.
Price Trends:
The price trends for the New Jersey housing market have been a bit troubling as of late. Over the last few years, the median sales price (price at which half of the homes are sold for less and the other half are sold for more), has been increasing by 11.4% year-after-year and 14.7% year-to-date. This is a sure tell sign of a strong demand for housing market and limited supply of estate, meaning that the affordability of these houses are surely going down, meaning that prices are going to be driven up higher and higher. According to RE/MAX real estate leader Robert Dekanski, the affordability index for NJ housing has decreased by 14.3% year after year, making it harder for potential buyers in New Jersey to acquire real estate. In the coming months, houses are going to become harder and harder to buy, so if you’re eyeing that nice little house for you and the family, maybe it’s best to buy it now.
Market Dynamics:
The housing market still is lively today, with real estate holdings going down from 40 days on the market before being sold to 38 days. This is a very exciting outcome as this means that properties are still being sold quickly and often to close or above the asking price. However, the inventory, or the amount of houses on the market, are decreasing, leading to a scramble among buyers to snatch up the amount of housing that is left.
Specific Housing Predictions:
This year, the multifamily housing market in New Jersey still remains strong out of all of the housing markets so far, showing that buyers have a larger preference for this type of housing. This is due to high demand for the rental properties due to housing constraints. The multifamily housing market is still expected to be going strong though, due to the current economic growth and the preference for flexible living among young professionals and smaller households.
All in all, the NJ Real Estate Market is looking to be extremely competitive and expensive as the year goes on, with very little chance for buyers to get houses at the prices they want. If you’re looking to buy a nice home for real estate, perhaps it’s best to buy now, or to wait and bide your time. The market looks to be pretty volatile ahead.