**We Buy Jersey Shore Houses LLC is introducing monthly market updates for our Sellers to keep them posted on what is going on in their local market.**
As many know, we are heading into uncertain times in the Real Estate market due to multiple factors such as rising interest rates, crippling inflation and changing Buyer sentiment. I wanted to provide our Seller’s with a market update of what we are seeing at the Jersey Shore as well as the overall feedback & sentiment that we’re hearing from other Investors and Home Buyers around the country. Let’s dive into it!
Interest Rates Continue to Rise
In the month of September, we saw the 30-year mortgage rate climb to 6.12%, which is their highest levels since November of 2008. While rates are still historically low compared to rates before the Great Recession, the higher purchase price of homes has created a “pressure cooker” situation where Buyers and Investors can no longer stomach the peak prices that developed during the COVID-19 Pandemic and are causing folks to walk away from potential sales because of the lack of affordability or return on their investment. We can also see this is the case as Housing Supply has started to creep up with an average of 2.9 months of supply, up 0.7 from a year ago in the same time period.
Jerome Powell, the Chairman of the Federal Reserve has already stated that another rate increase of .75% is expected before year end indicating continued pressure on home prices as affordability continues to diminish.
Sales Pacing is Slowing Down
Over the last year, we have seen properties that go on the market and are under contract quite quickly, if not feeling like almost instantly is some cases but the September data is indicating a slow down in how fast properties are going under contract with Pending Sales Under Contract within two weeks dropping to 34.1%, down from over 50% earlier in the year.
The fact is, Buyers and Investors are becoming more picky with what they are willing to purchase in the current market and Sellers are starting to realize it. We believe that the days of “Name your price” are going the way of the Dinosaur as those purchasing have had their buying power reduced substantially and Investors struggle to make a return. Time will continue to tell, but we’re confident in our opinion.
What If I Still Need to Sell My NJ House in the Current Market?
Sellers who are still motivated to sell in this market should consider the factors outlined in this update and determine whether they need top dollar for their property or if they might be willing to be more flexible with the terms of the sale. We believe that adjusting expectations on price and terms at this point will be the Seller’s friend in getting their property sold and moving on to the next chapter of their life.
If getting the absolute highest price for their home is the highest priority then we would advise taking the time and resources listing the property with a local real estate agent that is highly familiar with your Jersey Shore market, such as Carly Ringer. If that is not a feasible option, then the Seller might want to consider whether holding on to the property for another year or two is the best option as they wait out the market volatility.
Working With a Local Home Buyer
Everyday, we are actively talking to Sellers in all types of situations ranging from nightmare tenants, those who can’t afford to continue making payments, or maybe they simply just don’t like dealing with Real Estate Agents and the headache that comes with listing a property. No matter what your situation, we value our ability to serve our Community and our Sellers so please feel free to give us a call at (732) 456-7580 to speak with our Team or provide us with some information about your property and we’ll give you a call to make a fair offer for your house.
We’ll see you in October for our next market update!
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