September has gone and passed, and with it, the numbers of the housing market for the third quarter are able to be analyzed. With the conclusion of the third quarter, we would like to share with you the numbers we’ve gathered, patterns realized, and answer the existential real estate question: Is now a good time to buy or sell?
According to RealtyTrac, the national real estate market in the third quarter has seen a slight reduction in the amount of new foreclosures. However, repossessions have spiked 66%, meaning that while no new foreclosures have commenced, the banks are still active in taking back property.
Unfortunately for New Jersey, this is barely the case. While it is true that the housing crisis caused by the Great Recession is starting to balance out, New Jersey is still having some growing pains. In the third quarter alone, bank repossessions jumped 351% from where it was a year ago. If that wasn’t enough, New Jersey now has the highest foreclosure rate in the United States, where 1 in every 451 homes are being foreclosed. Atlantic City now reigns the title for largest metropolitan foreclosure rate. In addition, the average sale price of a home in New Jersey for the third quarter was up by 2% than it was a year ago, while the national increase was 6.9%. As far as sales go, the median sale price of a home nationally was $217,000. On the other hand, the median sale price of a foreclosed home was $117,500, offering a staggering difference of 45.9% between the two, which is up by 1% from last year. In Salem County alone, the median price of a home at sales price was $139,500, according to Truila.
These patterns look like they will continue for now, but eventually they will taper off. When that time is, exactly, is anyone’s guess, but sometime in the near future. We will be able to see a clearer picture based on the numbers from the fourth quarter.
The Verdict: Now, especially in New Jersey, is the time to buy.
Well, now you have the facts and our verdict. Since now is the time to buy, your first step would be to give us a call or step into our office. Whatever method suits you best, we’ll be here to help you purchase the house that fits you.