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Interest rates have just hit their lowest point in a year, which is fantastic news for buyers as it will boost their purchasing power. This is also promising news for sellers, as I’ll explain.
The lack of inventory is one of the main reasons home prices in New Jersey continues to break records, as other parts of the country are cooling down. For example, Austin, TX has a median sale price of -3% and an increase of 17% inventory year-over-year.
Once inventory ticks up, it will inspire even more homeowners to put a sign out on their lawn and finally make the move. There will be a short-term boost in home prices but I believe ultimately 2024 is the peak of home sale prices going up. My guess is around a 5% - 10% reduction in home prices by the end of next year, if the rates stay down and inflation doesn’t go back up. Sellers will still be selling their property for good prices but they'll also be able to relocate to a home that better meets their needs.
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