The phrase “housing market” refers to the general availability of houses being bought and sold among sellers and buyers in a specific area. The data that determines market value is collected from survey results of the Housing Market Index (HMI), a questionnaire given to the National Association of Home Builders (NAHB). Regardless of whether you’re interested in buying or selling a home, it’s important to keep track of the local housing market trends because it can affect your property taxes and/or rental prices in the area.
There are many factors that can affect the value of a housing market, even volatile ones. The most important trend to look out for is whether the market is leaning towards a buyer’s market, a seller’s market or neutral market. If an area is deemed a seller’s market, it means that the number of limited properties is exceeded by a large pool of potential buyers. This, in turn, will drive up housing prices. Contrarily, if there is limited interest and too much inventory, the buyers have the advantage because the prices will drop.
The housing market in the state of New Jersey has been tilting towards a seller’s market for many years. There are several reasons for this. One issue is the lack of available properties, which rapidly drives up demand. The fact that New Jersey’s unemployment is slightly higher than the average rate is also relevant because people won’t make large purchases if they are earning less than the average income of their peers. Other factors to consider are the median age of buyers and the minimum wage for each state.
The values of New Jersey homes have climbed in recent years, but a house might stay on the market for months because of the higher asking price of $300,000+. Because of its proximity to the beach, the best time to sell a house in the coastal cities of New Jersey is during the summer, preferably the first two weeks of May. Jersey City, however, has shown a different trend over the past few years, with the most homes selling in November. Because of these extreme differences between cities, it’s best to speak to a professional realtor when looking to sell or buy.
Winter and Fall tend to be the best times to buy because of the lack of demand, which leads to lower pricing. However, for people wanting to buy off-season to get the most bang for their buck, there is limited inventory to choose from. You might save money on the purchase price, but the properties available will be a much smaller pool to choose from.