By Erin McFeeters
Obstacle: Lack of Inventory
Potential home buyers around the state are experiencing a lack of inventory almost everywhere and the home buying process will likely take more time than it has in the past two years. According to NJ Realtors® February housing market reports, there were just 12,295 single-family homes for sale, an inventory decline of 30.5% over February 2021.
Realtors® in New Jersey agree that the lack of inventory around the state is a concern for their clients, and according to NJ Realtors®‘ latest member poll, 25% of members say their clients had to withdraw from the market because they’re not finding what they want in their price range.
How to Combat
Try expanding your home search. With inventory so low, you may have to widen your location up to bordering municipalities. Doing so will open up options in your price range while keeping true to the area of the state you desire to live.
Obstacle: High Prices
According to NJ Realtors®, the single-family median sales price was $430,000 in February 2022, an 8.9% increase over February 2021. Pair that with rising mortgage interest rates and property taxes, and your monthly mortgage payment could be hundreds to thousands more than anticipated.
NJ Realtors® members agree and report less satisfaction among their current clients with the housing options in their price range. Only 26% of members are totally satisfied compared to the 69% of members who were totally satisfied with the housing options in 2020.
How to Combat
Private lenders and state agencies such as the New Jersey Housing and Mortgage Finance Agency have programs to help buy a home in New Jersey. They have programs for first-time buyers, veterans, and more. Learn more about these programs here.
Obstacle: Bidding Wars
The lack of inventory creating additional obstacles for potential homebuyers to enter the market. The coined term, bidding wars, alludes to the idea that there is a high volume of buyers and competition for homes when they hit the market. It can be frustrating to lose out on homes, especially when homes are only on the market for 42 days and are receiving 101.3% of the listing price, according to NJ Realtors® February housing data.
How to Combat
The best way to combat bidding wars is to have market connections, experience, and knowledge about putting home offers. While you could go at it alone, using a local, knowledgeable New Jersey Realtor® makes all difference in the home buying process. Click here to find your Realtor®.