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
| 2018 actual | +2.5M |
| 2019 May | +75,000 (YTD 800,000 // YTD 2018 1.1m) |
| 2019 Forecast | +1.9M |
Us Unemployment
- ↓3.6% (50+ year low)
New Jersey Job Creation
| 2018 Actual | +39,000 jobs |
| 2019 Jan-May | +14,700 |
| NJ Unemployment | ↓3.8% |
(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
| Bergen County | YOY comparison (May 2019 to May 2018) |
| Y-T-D Single Family Closed Sales | +10.8% |
| Y-T-D Single Family Pending Sales | +5.8% |
| Y-T-D Single Family New Listings | +6.3% |
| 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 | +0.7% |
| Residential Absorption Rate | +4.8% |
(<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.
