January 2023 Real Estate Checkup: Are Home Sales Still Feeling The Chill?
Updated: Feb 13
By Susan Heckman
February 9, 2023
Monmouth/Ocean County home sellers, are you wondering what’s going on in real estate? How have mortgage rates affected the market? Is it still a sellers market? Are there benefits to selling now instead of in the spring or summer?
Let me answer these questions!
1️⃣ What’s happening in our local market?
The number of homes sold, compared to January of last year, has dropped (like, really dropped!) in both counties by about 30%, while average days on market has increased by about 20% over the same period. Prices have continued to climb, however, and that’s good news.
2️⃣ How have mortgage rates affected the market?
That drop in number of homes sold is largely due to buyers pulling back in response to spikes in mortgage rates and inflation worries. Mortgage rates have recently fallen to more palatable levels and buyers are taking advantage.
3️⃣ Is it still a sellers market?
Yup, although there are signs that it is changing. The absorption rate (or months of supply) in Monmouth County is 1.7 months and 1.8 months in Ocean County. Anything below 3 months is considered a sellers market, and we also know it’s still a sellers market because inventory is low, while demand is still high.
4️⃣ Are there benefits to selling now instead of in the spring/summer?
Boy, do I love to answer this question. Every January 1, we see the real estate market activity start to heat up, well before the weather warms up. Sellers that list during the winter have the following advantages: less competition, more serious buyers, better sale prices, and faster selling times. And since the market seems to be transitioning to a buyers market, sellers who list now may be getting their best results possible.
BOTTOM LINE:
If you’re considering a move this year, your best bet is to sell as soon as possible!
Send me a message or call 732-687-9980 for more information and to schedule a consultation with home pricing analysis.
Source: FlexMLS