4 REASONS WHY THE HOUSE MARKET WILL LIKELY BE STABLE

Several economists believe the housing market will slow down in 2023, but not crash. We see more more buyers feel confident to enter the housing market and we beleive that the market will hold steady. Here are 4 reasons why 

1. Low Months of Supply: As per May 2023 data, only 2.6 months’ supply is available. This scarcity of inventory explains why many buyers need to bid over the listing price. According to the law of supply-demand, it is predicted that home prices will remain stable for now.
2. Low Newly Constructed Housing Supply: The supply of newly constructed houses has yet to return to pre-2007 levels. Also, there’s no way for homebuyers to buy land, get regulatory approval, and increase the supply quickly.
3. Strict Lending Standards:  Today, mortgage lenders in New Jersey place high standards on borrowers, and most home buyers are required to have an excellent credit score.
4. Fewer Foreclosures: A majority of homeowners own significant equity in their homes. The personal balance sheets of homeowners are much stronger today than they were 15 years ago. As a result, the threat of rising foreclosures in New Jersey is low.

Call us for a consultation if you are considering buying or selling your home!