Mortgage rates are rising. Is now the time to buy? Here’s what you need to know.

Mortgage rates are rising. Is now the time to buy? Here’s what you need to know.

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
slowing down.

“Sales have slowed down a little bit, days on the market have come up,”
says Talwar.

Even though
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.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *