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According to the data, every Northern NJ county has dropped below 2023 inventory levels again. Morris County is still above 2023 levels but has seen a 6% decrease from last report. While some news reports suggest that inventory is improving, they mainly refer to the US as a whole. Inventory in NJ still isn't keeping up with demand. NJ is seeing 5,000 people seeking to move here, meanwhile NY has 37,000 people wanting to leave.
Another interesting takeaway from above is that the median sale prices have generally decreased, except in Hudson County. Hudson County has surpassed a $700,000 median sale price when we thought it would happen weeks ago.
Overall, despite drops in inventory and home prices, the numbers are relatively flat. Homes are still selling at about 10% above last year’s levels and our inventory is on par with 2023. Therefore, I don’t foresee a significant drop in inventory or prices in Northern NJ, but this trend won't forever. Inventory will increase when interest rates are cut, eventually bringing down prices.
Interest Rates
Speaking of interest rates, keep an eye on the news. I still believe the Federal Reserve will cut rates in September. We’ve also just seen the first decrease in inflation since May 2020, down 0.1%.
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