Princeton Town Topics – Let’s Talk Real Estate – May 16, 2022
MID-SPRING REAL ESTATE MARKET UPDATE
Mid-spring real estate prices nationwide remain near record highs in many markets, and last week’s increase in mortgage rates make buying a home an even more expensive prospect. The Freddie Mac fixed rate 30-year mortgage loan rate climbed to 5.30% last week, a rate not seen since 2009.
Meanwhile, in New Jersey, prices for single family homes continue to climb in markets across the state, as inventories remain low and buyer demand remains strong and steady. The median prices for homes increased by 8.8% from last year. However, the effects of the new mortgage rate increases have not yet developed.
Right now, buyers are still moving quickly as homes come on the market. Demand isn’t expected to drop off, especially heading into the summer months. Although the latest NJ statewide real estate market reports show a jump in home listings from February to March 2022, overall inventories remain extremely low. New listings increased the most in Monmouth, Middlesex, and Bergen counties.
Continued low inventories mean that buyers need to remain flexible in terms of preferences and amenities. Homes that need work are selling just as quickly as homes that are “move-in” ready.
