October 4, 2022
By Susan Heckman
If you’re tapped into real estate news like we are here at The Gallery Residential Brokerage, you have surely been just as bombarded with bold proclamations of current market conditions, good and bad, both locally and on a national level. With everything we are hearing and seeing in the media, it is understandable that home sellers and buyers are confused and unsure of the direction the housing market is pointing towards. Is it still a seller's market? Have rising home prices stalled out? Is it still a good time to sell your home? Let’s tackle these questions one at a time.
Is it still a seller's market?
In New Jersey’s Monmouth and Ocean Counties, recent sales data shows it most certainly is still a seller's market, although there does appear to be a softening in demand. The median number of days on market for September listings was still very low, about 14 days, which is unchanged from September 2021. While this number is expected to increase throughout the end of the year, homes that are well-priced will continue to sell quite quickly.
Another strong indicator of a seller's market is the absorption rate. This is the number of months that it would take to sell all listings currently on the market. Anything below 4 months is typically considered a seller's market. For Monmouth and Ocean Counties in September 2022, the absorption rate was just below 2 months, indicating that demand for homes at the Jersey shore is robust as buyers continue to snap up available properties.
According to the National Association of Realtors, the national absorption rate as of August 2022 is 3.2 months, demonstrating that homes in our shore communities continue to be in higher demand than those in surrounding areas.
Have rising home prices stalled out?
Here is where we are seeing some changes in our local market as well as across the country. While average list prices from September 2021 to September 2022 appreciated 18.5%, average sales prices actually saw a more modest increase of 3.5% for the same period.
What is affecting this deceleration in home appreciation? Among other factors, rising mortgage rates and the corresponding pulling back of buyers, who lose purchasing power every time rates go up and no longer appear to be willing (or able) to bid higher on available properties. We believe the days of double-digit home value increases are behind us, for now, as the market has applied the brakes and appears to be returning to a more balanced growth rate.
Is it still a good time to sell your home?
You bet it is. The key for sellers is to reset their expectations on pricing strategy and set the list price on their homes for exactly what the home is worth, not higher. Priced correctly, sellers can expect a faster sale and a great return on their investment. How do you do this? By hiring a true professional who can read the sales data and offer an accurate comparative market analysis for your home.
In addition, the fall season is a great time to sell a home. Colorful foliage enhances the appearance of the house and neighborhood, buyers are more serious overall and eager to lock in current mortgage rates, and there is higher motivation to close on a sale before the holidays.
How can we help?
If you are wondering what your home is currently worth, or have questions about timing a sale or purchase in this changing market, we would welcome the opportunity to address your concerns. Give us a call at 732-449-4646 or send us an email at info@thegallerynj.com.
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The Gallery Residential Brokerage is centrally located in beautiful Spring Lake, NJ. Visit us online at TheGalleryNJ.com