Buy Your NJ Home Before Values Climb Higher

Dated: 04/30/2018

Views: 444

Unsubstantiated theories abound as to why New Jersey home values continue to increase. From those worried lending standards are again becoming too lenient (data proves this untrue), to those concerned that prices are again approaching boom peaks because of “irrational exuberance” (also untrue as prices are not at peak levels when they are adjusted for inflation), there seems to be no shortage of opinion.New Jersey home values continues to rise--here's why!

Team Nest Builder wants to help you understand this increase in New Jersey home prices; it’s just supply and demand. Whenever there is a limited supply of an item that is in high demand, prices increase.  It’s that simple. In real estate, it takes a six-month supply of existing salable inventory to maintain pricing stability. In most housing markets, anything less than six months causes home values to appreciate and anything more than seven months causes prices to depreciate (see chart below).

Why Home Prices Are Increasing | MyKCM

According to the Existing Home Sales Report from the National Association of Realtors (NAR), the monthly inventory of homes for sale has stayed below six months for the last five years (see chart below).

Why Home Prices Are Increasing | MyKCM

Bottom Line

If buyer demand continues to outpace the current supply of existing homes for sale, prices will continue to appreciate. Nothing nefarious is taking place. It’s simply the theory of supply and demand working. What this means to you as a home buyer is that acting today could save you money tomorrow.  Give Team Nest Builder’s Lynn Garafola a call at 973-222-3777 to start your home-buying process now! Liked this article?  Check out our blog for loads of helpful information on real estate, home improvement and community events!


Source: KeepingCurrentMatters.com


Latest Blog Posts

OPEN HOUSE Sunday For Drastically Reduced Price 5BR With Almost 4 Acres In Country Setting

Do you desire sophisticated living in a serene country setting? Are you seeking the best value for your money in Sussex County? Look no further than 2 Liberty Trail! This regal 5

Read More

You Need More Than A Guide You Need A Sherpa

In a normal housing market, whether you’re buying or selling a home, you need an experienced guide to help you navigate the process. You need someone to whom you can turn to tell you how to price

Read More

Check Out TWO 4BR Colonial Open Houses This Sunday In Sparta

Seeking a fantastic 4BR Colonial in Sparta? Sunday's your lucky day! Team Nest Builder offers TWO gorgeous 4BR Colonial OPEN HOUSES in Sparta this Sunday, October 13th, from 1-3pm. Visit them both!

Read More

OPEN HOUSE Sunday Wonderful 3BR Crystal Springs Condo Townhome

Enjoy cachet, community and convenience in a vacation-like setting with 7 Hornbeam Way.  This move-in ready, 3-bedroom, 2.5-bathroom condo townhome offers Crystal Springs

Read More