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Market Update:
Median sale prices across Northern New Jersey remained very strong. All counties except Passaic are above their median sale prices since 2023, and most remained near record highs for January. Some of these gains are significant, which I would say are mostly due to low inventory the previous two months.
At the same time, homes are taking longer to sell in most counties than they have been in previous years. I believe this is due more to buyer hesitation to overreach for a property in the first two weeks of a new listing. Even so, all remain well within a strong seller's market. I would note that Morris County continues to stand out, with homes selling in roughly 30 days, which is more than twice as fast as the rest. This has been a consistent theme and, in my view, reflects stronger value and more realistic pricing in many Morris County towns.
Passaic County is the exception on pricing. It is the only county below last year’s median sale price. Buyers are active, but more disciplined and the average home is still selling over asking price.
Federal Reserve Rate Cuts
The Federal Reserve decided to break their three month trend of rate cuts by a 10-2 vote. They are back to their "wait and see" approach as they observe a resilient economy with persistent higher prices, even with inflation lower than the previous years. Jerome Powell also mentioned that the job market has stabilized and the economic growth is "more robust than expected."
The Feds continue to claim they want a 2% inflation rate (currently 2.7%) and need more convincing evidence of a "cooling economy" or to see a faster drop in inflation before cutting again. This philosophy from the Feds may change this year. Powell will not regain his chair on May 15, 2026 as President Trump plans to replace him with someone who will more aggressively cut rates - something he says he wants repeatedly.
A good sign the Federal Reserve will cut interest rates is if mortgage rates have dropped leading up to the announcement. Considering rates have ticked up slightly, that observation is solidly consistent.
What Will Lower Mortgage Rates Do?
If the rates continue to drop, especially by a significant number, we should expect to see; more homes for sale, higher prices, increased competition, more bidding wars, and possibly more new construction homes.
As always, the impact will vary by town and price range, but rate movement remains one of the biggest drivers to buyer and seller activity.
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