*Since the recording of this video the Fed had their final meeting of 2023... They kept rates steady and even announced to expect rate decreases in 2024... The average 30-year fixed mortgage rate falls to 6.82% following the Fed press conference. That's the lowest reading since May18th.
Interest rates have decreased significantly in the last month or so, leading to more people re-entering the market. In this blog post, we will review the real estate market in New Jersey in 2023, including the major trends and events that have shaped the market throughout the year.
2023 has been an exceptional year for the New Jersey real estate market, thanks to the significant rise in interest rates early on. The market experienced a severe reduction in inventory, and fewer homes were on sale than in the last few years. However, despite these challenges, there was no visible reduction in purchase prices. Interestingly, the rising interest rates from the beginning of the year might be a thing of the past, and we are likely headed for a downward trajectory in the near future.
The reduction in interest rates in the last couple of months has led to a positive change in the market. As previously stated, we saw the 30-year rate almost hit 8% and slightly above it. Fortunately, we have seen a near-full-point reduction in mortgage interest rates since then, reaching about 7%. As a result, buyers who were previously hesitant to enter the market due to rising interest rates are returning. This development has lessened concerns over the rates and might be the reason for the upswing in the market.
Even with the challenges in the market, New Jersey’s real estate market remains resilient as we end the year. Across the country, there are still multiple offers on most properties. This year, we saw two and a half offers on each property. .
The New Jersey real estate market has had its fair share of challenges throughout the year but has proved resilient. Navigating the market has been a challenge for both buyers and sellers, but the end of the year presents more opportunities for buyers and sellers alike. The reduction in interest rates has created a renewed interest in the market, and with more people moving into the state, the demand for homes will continue to rise.
In conclusion, the New Jersey real estate market has had a turnaround in recent months, thanks to the reduction in interest rates that led to an upswing in the market. Even with the challenges the market has experienced throughout the year, it remains a resilient and promising and strong market. As we head into the new year, the market is poised to remain steady and offer opportunities to buyers and sellers alike.