As we move into the final quarter of the year, the real estate market continues to evolve. In this September 2024 update, we’ll take a closer look at the local market here at the South Jersey Shore—covering Atlantic and Cape May counties—alongside national trends that could influence real estate as we head into 2025.
South Jersey Shore Market Overview
The South Jersey Shore market has seen some notable changes over the past year. Active listings have increased compared to August 2023, rising from 1,067 to 1,261. However, pending listings have slightly dipped, signaling a shift in buyer activity. Inventory has also increased, with months of supply jumping from 2.9 months in 2023 to 3.8 months in August 2024. This trend suggests a growing number of homes available on the market, providing more options for buyers while giving sellers more competition.
Despite the rise in inventory, buyer demand remains high. Showings are above the levels seen in 2021, 2022, and 2023, indicating that there’s still significant interest in properties. As a seller, this means it’s still a good time to list your property, though proper pricing is key to attracting buyers in this competitive environment.
New Real Estate Laws in New Jersey
One of the most significant updates in the New Jersey real estate market is the implementation of new laws as of August 1, 2024. These changes aim to protect both buyers and sellers by increasing transparency:
- Mandatory Seller Disclosure Forms: Sellers are now required to complete a disclosure form outlining details about the property, such as the age of the roof and known defects. This benefits buyers by providing more information upfront before making an offer.
- Brokerage Service Agreements: Buyers must now sign a representation agreement with a real estate agent before touring homes. This formalizes the relationship between the buyer and agent and ensures clear communication from the start.
- Designated Agency: Within brokerages, different agents can now represent separate parties (buyers and sellers) in the same transaction, protecting each party’s interests.
- Disclosure of agency relationship at open house: Agents hosting an open house must disclose that they represent the seller and their best interest. Because of this, the agent can take anything the buyer says back to the seller and use it to their advantage.
- Removal of broker compensation from MLS: Seller can still offer buyer broker compensation but it's no longer displayed in the MLS. Brokers share this through 1 to 1 communication and other marketing methods.
These new laws aim to create a more transparent and secure process for everyone involved in real estate transactions in New Jersey.
National Market Trends
On a national scale, inventory is also increasing across the U.S., though we are still in a seller’s market with an average of 2.7 offers per listing. Mortgage rates have started to decline, with interest rates falling from nearly 8% in 2023 to close to 6% today. This trend is expected to continue as the Federal Reserve is likely to reduce rates later this year, with experts predicting further cuts in 2025.
While some markets, such as Florida, are cooling off, others—especially in the Northeast, including New Jersey, New York, and Philadelphia—remain hot. Experts project a modest home price appreciation of 2-3% in 2025, pointing toward a more balanced and stable market in the year ahead.
Pricing Your Home Right
With more homes coming to market, pricing strategy has become increasingly important. While buyer demand is still strong, homes that are overpriced tend to sit on the market longer and may receive lower offers than anticipated. It’s essential for sellers to price homes competitively, as buyers are becoming more discerning in today’s market.
Looking Ahead to 2025
As we approach 2025, several factors will influence the real estate market:
- Mortgage Rates: A slow but steady decline in mortgage rates is expected, potentially dropping to 6% or lower.
- Inventory Growth: More homes are likely to come on the market, giving buyers more choices and moving the market toward a more balanced state.
- Home Price Appreciation: While prices will likely continue to rise, the appreciation rate will be more modest, around 2-3%, compared to the rapid growth seen in previous years.
Final Thoughts
The South Jersey Shore market remains vibrant as we head into the fall, with strong buyer interest and increasing inventory. National trends point to a cooling yet still competitive market, especially as mortgage rates continue to decline. Whether you’re buying or selling, the key takeaway is that real estate decisions should be driven by personal goals rather than attempts to time the market.
If you have questions about the local market or want to explore buying or selling opportunities, feel free to reach out. I work with clients across the South Jersey Shore and have a network of trusted partners nationwide to assist with your real estate needs.
Thanks for tuning in to the September 2024 update, and I look forward to connecting with you soon!