The housing market in New Jersey, Pennsylvania and in many other areas of the country is particularly strong right now. However, this is actually posing problems for home sellers and potential home buyers because there simply are not enough homes staying on the market for sale.
Nationwide home inventory in May 2016 was nearly four percent lower than the inventory of for-sale homes in May 2015, according to the most recent report issued by the National Association of Realtors. Additionally, Redfin, a residential real estate company that maintains a widely used online database, indicated that there has been a significant decline in new listings of homes for sale throughout the U.S.
In New Jersey, the inventory of homes for sale way down from last year’s numbers. This is true for single-family houses, townhouses-condos and adult community residences. Compared to May 2015, total inventory of homes for sale in NJ is down more than 12 percent.
Low Inventory Can Hurt the Real Estate Market
Although one ordinarily might expect low supply and high demand to be a boon for sellers of real estate, this rare combination of factors can also make it difficult to convince a seller to ultimately sign on the dotted line and part ways with their property. One reason for this reluctance to sell a property that has been listed for sale is that the potential home seller may realize that they could have a tough time finding another home to purchase.
In short: when demand exceeds supply in the real estate market, for-sale listings can rapidly decline. So while pending sales and closed sales of homes in New Jersey are up – suggesting that the real estate market is robust right now – the reality is that things could be even better for home buyers and home sellers if only there were more homes available.
To learn more, check out the Yahoo.com article, “Low Supply Plagues Spring Housing: Here’s Where It Is Worst.”
If you are thinking about buying a home or selling a home in New Jersey, you should talk to a qualified real estate and debt management lawyer before making any final decisions. Joel R. Spivack, Esq., is an experienced real estate and debt management attorney who will help you throughout the home buying process. Contact Mr. Spivack now to schedule a free consultation.