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Home prices are still rising, even though more houses are hitting the market. But I’m seeing some hesitation from buyers as the rise in inventory seems to be making people indecisive. It’s like they’re waiting for prices or interest rates to drop, or they think another listing may come up that is better than what's available. We are not use to seeing so many homes for sale, so it's throwing people off, in my opinion.
Here’s what the data shows:
- Across the U.S., there are far more sellers than buyers. Inventory has improved, but homes are not selling like they have and some buyers remain hesitant investopedia.com
- In New Jersey, prices rose about 5.5 % year‑over‑year in May. Yet sales dropped nearly 4.5 %, and listings increased by almost 6 % redfin.com. This tells me there are more homes being overpriced.
- Some homes are finally seeing price cuts or seller incentives, because of overpricing as I mentioned, but overall NE NJ is still a seller market njlenders.com
If mortgage rates fall, more buyers will enter the market, which will also bring more sellers (as they too want to buy). But I would think it will be a good year before we see an overall pullback of home prices on average in our state.
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