Saddle Brook, NJ – December 9, 2022- Housing affordability is still a problem for both buyers and sellers in Bergen County for the month of November. Mortgage rates are more than double compared to this time last year. Buyers are delaying home purchases while they wait for rates to drop. Therefore, sellers are holding off on listing due to decreased buyer demand.
For many sellers, the opportunity cost of losing their current lower rates in exchange for higher borrowing costs on their next properties is not worth the risk. Soaring borrowing costs have caused monthly payments to increase significantly, with the average homebuyer paying 77% more on their loan per month compared to the same period a year ago.
Consequently, existing-home, and pending home sales continue to slow moving into the winter season with single family closed sales down by 29.1% and townhouse-condo closed sales decreased 29.3%. This month, adult communities closed sales increased 260.0%. Single family median sales price increased 1.7% to $610,000, and townhouse-condo median sales price increased 5.9% to $400,000, with adult communities median sales price down 33.9% to $495,000.
Heading into November, housing inventory was at 3.3 months’ supply, up from 2.4 months this time last year. Although buyers have more options to choose from with higher inventory, home prices remain high, and the housing market remains stagnant.
“Reviewing the market for 2022, we see closed sales as well as homes for sale both decreased by double digits, yet the median home sale price increased and continues to do so,” says Greater Bergen REALTORS® 2023 President, Margaret Ajamian. “Always look at the market with the glass half-full mentality. For buyers, it could be wise to purchase now, as prices continue to rise. Sellers could find less competition in the current market.”
Data as of December 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
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