Affordability challenges are limiting buying activity, and early signs suggest competition for homes may be easing off somewhat. Nationally, existing home sales are down 2.7% as of last measure,
Reading the Tea Leaves: Are National Trends Coming to Monmouth County?
Dated: June 8 2022
Affordability challenges are limiting buying activity, and early signs suggest competition for homes may be easing off somewhat. Nationally, existing home sales are down 2.7% as of last measure, while pending sales dropped 1.2%, marking 5 straight months of under contract declines, according to the National Association of REALTORS®. Inventory remains low, with only 2 months supply at present, and home prices continue to rise, with the median existing home at $373,500, a 15% increase from this time last year. Homes are still selling quickly, however, and multiple offers are common in many markets.
In Monmouth County, inventory is still low but sales are still moving forward at the same clip they have for the last couple of years (see Chart 1). Average sales prices are higher than average list prices (see Chart 2), and days on market are at a multi-year low (see Chart 3).*
What we surmise from the above data is that signs are pointing to a cooling in the national real estate market, but that has not hit here yet. Whether it does to the degree we're seeing nationally or not remains to be seen, but for now, you can still expect top dollar if you're a seller and bidding wars if you're a buyer. This may very well be the last summer of this particular feeding frenzy though. Buyers, hang in there. You should see more options when the weather cools.
*Raw data supplied by Monmouth Ocean Regional REALTORS® https://docs.google.com/
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