Housing Market Update- August 2022

So what is really happening in our current real estate market? Let's start with increasing home inventory, declining home sales, and rising home values.

Across the country, we are starting to see signs of?increasing inventory.?This change is because more homes are coming to the market and also because there's been somewhat of a decline in home sales.

Home sales are starting to decline?primarily because of rising mortgage rates and higher home prices. This slight softening of buyer demand and more inventory available for sale equates to less buyer competition and fewer bidding wars. That is not to say there won't be bidding wars anymore- there will be!

According to realtor.com, "Experts don't believe the market is in a bubble or a crash is in the cards, like during the Great Recession. The nation is still suffering from a housing shortage that has reached crisis proportions at a time when many millennials are reaching the age when they start to consider homeownership. That's likely to keep prices high."

Even though there is a slight decline in home sales, the fact remains that there are still more homebuyers than homes for sale; therefore, home prices are not depreciating. They are decelerating. Deceleration means continuing to appreciate but at a slower rate. Values are still estimated to increase by 8 or 9% this year. That's good news for today's homeowners and today's homebuyers as well.

Check out some of the latest market activity in North Jersey, and let me know how it compares to your local market!

Want to learn more about your market area? I'm happy to help.