August saw the biggest drop in home prices in 13
years. The average sale price is down 2% since peaking in June, and the effects
are now being felt in New Jersey.
Housing sales have slowed dramatically in the past
seven months, down 24% as the Fed began
raising mortgage rates.
Purnima Talwar, of Realty
One Group Central in Freehold, says the market can be healthy even if sales are
“Sales have slowed down a little bit, days on the market have come up,”
mortgage rates have doubled this year, looking at building permits is a great
barometer of peoples’ intention to build, buy or sell in the future. Caleb Silver, of Investopedia, says
the state is bucking a trend in the tri-state area.
“Hudson County building
permits are up 41% since April when the federal reserve began raising rates,”
says Silver. In Monmouth County, they are up 14%. Bergen County up 9%. Only
Morris County is down 81%.
Talwar has one more word of advice for
buyers who have had no luck in landing a home.
“Keep trying,” says Talwar.
“Keep trying! The market is getting better. There is a house for them.”
Talwar says there are fewer bidders right
now, so a fair bid can get the house. As for sellers, inventory is still low,
so while prices are starting to drop, you’ll still be better off selling now
than you were a year ago. You’ll walk away with more cash.