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How the South New Jersey Real Estate Market Changed in One Year
If you are thinking of buying or selling a home in southern New Jersey, you might be wondering how the market has changed since last year. In this blog post, we will compare the June 2023 real estate market with the June 2022 market, and look at some of the factors that influenced the changes.
Interest Rates
One of the biggest factors that affect the demand and affordability of homes is the interest rate. The lower the interest rate, the more buyers can afford to borrow and the more sellers can expect to receive for their properties. In June 2022, the average interest rate for a 30-year fixed mortgage was 3.25%, according to Freddie Mac. In June 2023, the same rate was 2.75%, a drop of 0.5%. This means that buyers could save about $140 per month on a $300,000 loan, or about $50,000 over the life of the loan.
Inventory Levels
Another factor that affects the real estate market is the inventory level or the number of homes available for sale. The lower the inventory level, the more competitive and favorable the market is for sellers, as they can ask for higher prices and receive multiple offers. The higher the inventory level, the more choices and bargaining power buyers have, as they can negotiate for lower prices and better terms. In June 2022, there were 4,500 homes for sale in South New Jersey, according to Zillow. In June 2023, there were 3,000 homes for sale, a decrease of 33%. This means that there were fewer homes to choose from and more buyers competing for them.
Conclusion
The South New Jersey real estate market has changed significantly in one year, becoming more favorable for sellers and more challenging for buyers. The interest rates have dropped, making homes more affordable, but the inventory levels have also dropped, making homes more scarce. If you are planning to buy or sell a home in southern New Jersey, you should consult with a local real estate agent who can help you navigate the market and achieve your goals.
