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Mary Menard's Blog

By Mary Menard | Agent in Mountain Lakes, NJ

North Jersey Home Sales Taking a Dip? Maybe Not So Much

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, it’s been the same almost everywhere in the country. So it may have been unsettling to some when the National Association of Realtorsâ 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, “not much.” CNN Money thinks it’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 who’s been waiting for home prices to rise.

The factors seem to funnel into a single effect: compared with the landmark bargains we’ve gotten used to as the Morris County home sales market recovers, the drift is toward more mortgage for less house. Even so, last month’s home sales were still the second highest since November of 2009 ­— up more than 13% from June, 2012! For the past 3½ years since May, the realty business in general has been doing quite nicely, thank you.

Although 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 you’re considering listing a home this fall, it’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 you’re thinking of selling your Morris County home, a solid first move is to call me for an up-to-date price evaluation – and we can take it from there! 

Your Home. My Commitment.

Mary Menard

973-879-2860

 

Comments

By Suzanne MacDowell,  Tue Aug 6 2013, 13:06
Great post Mary! Based on what I am seeing, I would expect any dip in prices or slow down in sales to be very short lived! I listed a home last week that was only available for showing for one day and we expect an offer on day two. Price the home correctly and it will not only sell, it will sell quickly.

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