I just received the cold hard facts about what is driving home prices up in the New Jersey communities I serve. Plainly said– It’s a lack of inventory! There are 2 primary factors causing this decrease.
The first is the fact that so much inventory was sold off. Buyers came rushing into the market this spring because the economy is better, they feel more secure in their jobs and interest rates are climbing. The second contributing factor to home prices going up is buyers are in a bit of a rush, and therefore it takes much less time to sell a house today than it did a year ago- and therfore trades at a higher price.
We are all witnessing this market pendulum swing right in front of our eyes and it is remarkable. We’ve sort of known this intuitively, but now the numbers have been tallied and it is really quite a story — Home prices are up – after being down 2006 – 2012.
Comparing Year-To-Date (Jan. – August 16) 2013 to 2012 listing inventory is down by:
Livingston – 27.74%
Millburn/Short Hills – 13%
Maplewood – 37.5%
So Orange – 22.6%
Summit – 32.9%
W Orange – 22.58%
What a great time to consider selling your home, or to make a move up. With interest rates just under 5% and prices just beginning to swing upwards – timing couldn’t be better. Let me know if you are interested in knowing what your home is worth.