Hey there, American Dream Realty of South Jersey fans, and welcome to our latest blog! From time to time, we like to analyze the recent market trends, and see if it’s a great time for you to buy or sell. Well today, please join us as we go over the data from the second quarter of 2017!
Overall, in the State of New Jersey, the market has grown in both median list price and median sales price, by 4% each way, when comparing to numbers just the year before. However, in relation to the first quarter of 2017, they have dropped by approximately 5%. What this means is that the market is overall stronger than it was a year ago, but there is slightly less demand than the first quarter, causing prices to drop ever-so slightly (an average of about $18,000 since January 2017).
Now, let’s focus on our slice of South Jersey, as it paints a slightly different picture than the rest of the state. In Salem County, the data is showing a 7% decrease in median list price and a 9% decrease in median sales price since second quarter 2016. In Gloucester county, we are seeing an interesting trend, where the median list price has increased 7% since a year ago, but the median sales price has dropped 3%. In fact, the data suggests that the median sales price has been decreasing steadily for the past year.
Ok, so all this numbers and data is great, but what does it mean in plain English?
What the data is trying to tell us is that while homes in our region have been seeing a moderate increase in the listing price—price that the home is initially put up for—the sales price—what the buyers are actually paying—is dropping. For example, the median listing price for a home in Gloucester County was $160,000 in the second quarter, but the median sales price dropped to $144,900—leading to a $15,000 difference!
Economics 101 tells us that when house prices fall, the supply of houses is going up or demand falls; all giving an advantage to the buyer That being said, so long as the trend continues, third quarter 2017 is the perfect time to buy!
Think about it: the fewer number buyers out there means that you have more options to choose from, and the sellers are more likely to settle less than the listing price just to be able to get a closing date—which is all backed up by the data. Numbers never lie, and you can take advantage of them today to get a beautiful home in South Jersey.
If you’re ready to hit the great markets today, stop on into our office, and see what we can do for you!
*All raw data for this blog was taken from realtytrac.com.