By now, most people have gotten used to seeing home sales in North Jersey on the rise. Aided by the national recovery and historically low mortgage rates, itâ€™s been the same almost everywhere in the country. So it may have been unsettling to some when the National Association of RealtorsÃ¢ reported that in June, home sales notched down by about 1.2%. As August begins and we wait for the final July numbers to come in, local homeowners considering listing their home this fall may be wondering what that drop could mean.
The safest answer is probably, â€œnot much.â€ CNN Money thinks itâ€™s just fallout from the rise in mortgage rates. Related factors are the continuing shrinkage in foreclosures and short sales and a general shortage of inventory (NAR reports about 8% fewer homes than during the same period a year ago). In fact, some studies suggest that the slower sales pace last month was simply due to that lack of inventory. It could be worrisome...unless you are an owner whoâ€™s been waiting for home prices to rise.
The factors seem to funnel into a single effect: compared with the landmark bargains weâ€™ve gotten used to as the Morris County home sales market recovers, the drift is toward more mortgage for less house. Even so, last monthâ€™s home sales were still the second highest since November of 2009 Ââ€” up more than 13% from June, 2012! For the past 3Â½ years since May, the realty business in general has been doing quite nicely, thank you.
the mortgage rate increase may tend to slow down the pace of North Jersey home
sales over the coming months, when you take a step back to look at the trends,
the direction is reassuring. If youâ€™re considering listing a home this fall,
itâ€™s good to remember that although the graphs may go up and down, most experts
agree that the recovery trend can be expected to continue to rise. If youâ€™re
thinking of selling your Morris County home, a solid first move is to call me
for an up-to-date price evaluation â€“ and we can take it from there!Â
Your Home. My Commitment.