The spring selling season is upon us, and there are many positives driving the market in a positive direction! This article outlines some of the most important factors that Realtors & consumers alike should understand about the state of our housing market.
Home prices are surging:
Price growth is only increasing, due to a lack of inventory in some markets.
Mortgage rates hold steady:
30-year fixed rate mortgages remain at 3.7 percent, but that is likely to change. “Low mortgage rates are a welcome sign for those in the market to buy a home this spring season and will help to support homebuyer affordability,” says Len Kiefer, deputy chief economist at Freddie Mac.
It continues to be a seller’s market, as total housing inventory at the end of February increased just 1.6 percent. For the second month in a row, unsold inventory is at a 4.6-month supply, below what is considered normal for a healthy market.
Buyers want move-in-ready properties:
Despite the low housing inventory, buyers are picky about the condition of properties for sale and expect homes to be move-in-ready.
Foreclosures keep slipping:
Foreclosures are at an 8 1/2 year low due to both an increase & growth of our economy, along with lower mortgage rates giving consumers the ability to refinance, lowering their mortgage payments.
Millennial clients are providing the push for home builders to downsize. The average size of a new home is 10% less than the typical home five years ago. Younger clients are leading the push for green and energy efficient homes, according to a recent study by NAR.
National award-winners and seasoned Realtors with over many years of experience in Northern & Central New Jersey, Rahul & Smitha and their team have become New Jersey’s “Go To” agents and consistent leaders with a reputation for tenaciously protecting their clients’ interests. They specialize in Morris, Somerset, Essex, Union and Passaic counties.