Lower interest rates (3.8% in May) have been a catalyst for increased sales activity. Future rate increases will again diminish the buying power. Indecisive buyers have a lot of competition. A strong economy and banking system will prohibit a market correction shortly and the tight inventory will continue to drive up prices, just a little slower this year - a good time to make a move!
National Job Creation
||+75,000 (YTD 800,000 // YTD 2018 1.1m)
New Jersey Job Creation
(lowest in 12 years - down from 9.8% in 2009).
|Y-O-Y Sales Activity
||+ 1% (5/19 compared 5/18)
(YTD +3% Y-O-Y) the largest gain in <400K.
NJ Unsold Inventory Continues to Rise Slowly
- below 400K a sharply decreased (-13% May)
- -41% compared to the cyclical high in 2011
- equating to 3.5 months of sales - in the seller’s favor
||YOY comparison (May 2019 to May 2018)
|Y-T-D Single Family Closed Sales
|Y-T-D Single Family Pending Sales
|Y-T-D Single Family New Listings
|Y-O-Y Days-on-Market Single Family
||+16.9% (from 65 in 2018 to 76 days in 2019)
|Y-O-Y Residential Median Sold Price
|Residential Absorption Rate
(<5-6mo of inventory = seller’s market and >5-6mo of inventory = buyer’s market).
Mortgage Rates are down 3.8% from 4.5% in May 2018 resulting in more buyers jumping into action, increasing the competition among buyers.