Saddle Brook, NJ – October 28, 2022- According to the most recent real estate market analysis report, the U.S. market continues to slow as we move into fall. Due to existing inflation, the Federal Reserve has implemented another 75-basis-point hike in September -the third such rate increase in 2022. Consumer prices continue to rise, and higher mortgage rates continue to affect homebuyer budgets, thus cooling activity in the housing market.
Continuing through September, the cost of borrowing everything from credit cards to auto loans has reached multi-year highs in Bergen County. Home sales continue to decline for a disappointing seventh consecutive month due to 6% mortgage interest rates that have not been seen since 2008.
This month in Bergen County, single family closed sales decreased 19.3%, townhouse-condo sales decreased 3%, and adult community closed sales decrease 75%.
Alternatively, single family median sales prices rose 8.4% to $649,450, townhouse-condo median sales prices rose 7.8% to $415,000, and adult community sales prices rose 25.3% to $321,000.
According to the National Association of REALTORS®, monthly mortgage payments in September are more than 55% higher than this time last year. Inventory of houses remains very low. For the portion of buyers in Bergen County who successfully purchased homes, they are finding the costs of homeownership have significantly increased. September 2022 records show a steep decline in single family, townhouse-condo, and adult community pending sales, as potential buyers continue to be priced out of the market due to affordability challenges.
For those holding onto their wallets and holding out for a positive market shift, experts predict that as we move into winter, homes will continue to spend more days on market as numbers are creeping back up to match those of this time last year. Experts also suggest that price growth will eventually slow to a place that is manageable for potential homebuyers.
Read the full monthly indicator report for September 2022 here.
Data as of October 20, 2022. All data from New Jersey MLS and Hudson County MLS. Margin of error for reported statewide numbers is +/- 4% at a 95% confidence level. Provided by New Jersey REALTORS®. Report © 2022 ShowingTime.