Princeton Town Topics – Let’s Talk Real Estate – November 2, 2022
NATIONAL REAL ESTATE MARKETS SHIFT WHILE NJ TRENDS STAY LOCALIZED
Real estate markets are shifting in favor of buyers in many locations around the nation as rising interest rates remain a key factor. But in New Jersey, markets remain very localized as areas with considerable demand continue to experience low inventories of homes.
As we approach the final weeks of the year, the increase in mortgage rates is limiting budgets and financing options for many buyers, who in some cases are pulling out of the current market. According to new national real estate reports, pending home sales were down 10.2% nationwide in September.
Meanwhile, in New Jersey, in September median home prices slipped lower from the previous month. However, on a year-to-year basis, median prices statewide were 7.1% higher than they were a year ago. Inventories are still lower in many markets. Prices remain strong in the most desirable markets, despite increases in interest rates.
Prospective buyers who are still looking to make a purchase before the end of the year should be prepared by securing a mortgage pre-approval before they seriously begin to look at homes. Sellers won’t consider an offer without a pre-approval letter. Meanwhile, buyers may want to widen their search to more areas.
