The Current Misconception of the South Jersey Real Estate Market Now
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As a real estate professional with 45+ years of experience, I’d like to briefly discuss a misconception and share some data to support my opinion. I’ve dealt with a couple of clients lately that wanted to offer a SIGNIFICANT amount lower than the list price of a property. Please hear me: THAT ISN’T THE TYPE OF MARKET WE ARE IN!
The graph below shows the supply of homes on the market. A stable market is about 6 months with anything below being a sellers market and anything above being a buyers market. In the craziness of the 2022 market we were down to about 2 weeks of inventory….but we are still under 3 months at this point and as such, STILL in a SELLERS market.
For the most part, we aren’t seeing sales prices of $2500-$10,000.00 OVER listing prices, but we are seeing in certain price points multiple offers at and around listing price. Data is showing sales prices between 98%-101% of list price.
Moral of the story, even if you think the property is listed too high, the law of supply and demand still applies. I understand that interest rates are higher but lower prices are NOT on the horizon by anyone that is credible. Buy the house NOW that you can afford, and later this year or next, rates will come down and you can refinance. IF you wait, you will be buying at a higher price. As rates do start to come down, with lower inventory supply, prices will continue to increase.
Every person’s situation is different and I understand that. If you would like to discuss your individual situation, feel free to reach out. To begin searching for your next property, check out: www.GarySimmens.com for more info and see recent solds and active homes for sale along with current market reports.