The Real Deal: 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.
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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.