Bergen County Real Estate Update: Looking Back On July's Numbers

Homebuying Activity Faces Affordability Constraints This Summer

Affordability challenges have put a damper on homebuying this season. The latest data reveals a decline in nationwide existing-home sales, and rising mortgage rates have influenced both potential buyers and current homeowners.

Key Insights:

• Existing-home sales experienced a 3.3% decrease month-over-month, as reported by the National Association of REALTORS® (NAR).
• Mortgage rates have been hovering close to 7% in recent times, causing many potential homeowners to reconsider their purchasing decisions temporarily.
• The rise in rates has deterred many homeowners from putting their homes on the market, due to the appeal of the low-rate mortgages they secured during earlier, more favorable conditions.

Statistics Spotlight:

• Single Family Closed Sales saw a decline of 24.2%, standing at 954.
• Townhouse-Condo Closed Sales decreased by 22.1%, totaling 356.
• Adult Communities Closed Sales observed an increase of 12.5%, tallying 18.
• The Single Family Median Sales Price went up by 3.2%, reaching $650,000.
• Townhouse-Condo Median Sales Price saw an 8.4% increase, settling at $450,000.
• Adult Communities Median Sales Price surged by 20.8% to $517,500.

Despite the setbacks in existing-home sales, the housing market remains robust in terms of pricing. The national median sales price was recorded at $410,200, just 0.9% shy of the peak figure of $413,800 in June 2022, as per NAR's data. As we moved into July, a mere 3.1 months' supply was available, intensifying competition among buyers. This scarcity in inventory has been a significant factor propelling sales prices, particularly in markets where affordability is a primary concern and the demand for homes is incredibly high.