If you are looking to sell house fast in New Jersey, you may be up for a challenge.
The New Jersey housing market is going through major changes. This is largely due to the fluctuating interest rates of the real estate market.
When interest rates were low in 2021 and at the beginning of 2022, median sale prices in the state were up 7%. But interest rates have gone up considerably causing the number of homes sold to drop by 14.7% As a result, sellers are lowering their prices.
There is some concern that a housing bubble could occur which is characterized by high supply and low demand. But considering the legislation currently in place, that’s not likely to happen. However, that doesn’t mean it will be easy to sell your home.
So what’s your best option? It may be to find cash buyers in New Jersey. Read on to learn more about the state’s market and how a cash buyer company can help.
Why is it Hard to Sell House Fast in New Jersey?
To understand why it is hard to sell house fast in New Jersey, let’s look at some key statistics. The average home price in New Jersey is $471,472. Prices fluctuate depending on the neighborhood you are shopping in, but this gives you a good idea of what to expect.
When mortgage rates were low, home prices shot up. Sellers knew they could charge more as buyers were eager to take advantage of the deals.
But now mortgage rates are going up. Sellers are having to lower their prices to compensate. As a result, prices are still increasing, but they are not increasing as quickly as they were before.
For example, prices on New Jersey homes rose 12% in 2020 and another 15% in 2021.
But in 2022 when mortgage rates increased, prices went up by only 5%.
Looking ahead, the Mortgage Bankers Association predicts that home prices will pretty much stay the same through 2023. When you consider the fact that inflation continues to rise, this means homes can actually lose value.
Buyers are Getting Cold Feet
The fact that home prices are going down spells bad news for sellers. On one hand, they are having to lower prices which means they won’t get as much of a return on their sale. They are also having a hard time finding buyers as many are losing faith in the current real estate market.
Buyers are holding off on investing hoping that interest rates will get lower. While it’s likely that this will happen, there’s no saying how much rates will drop or how soon it will happen.
Meanwhile, sellers are having to wait longer to sell their homes. Some must even temporarily take their listings off the market and relist them at a later date. This could be very difficult if you need to sell your home quickly due to a job move, divorce, etc.
Why are Interest Rates Rising?
Inflation is playing major role in the increasing mortgage rates. The Federal Reserve is raising rates to counter rising prices. The idea is that high mortgage rates will force sellers to lower their prices making homes more affordable.
This will, in turn, decrease demand for other products and services causing companies everywhere to lower prices. It is hopeful that this will reduce inflation. So far, the Feds efforts have been working, but they are still far from their 2% inflation goal.
How Cash Buyers in New Jersey Can Help
Selling your New Jersey home is not easy. But you can save yourself a lot of stress by opting to sell with a company that offers deals like ‘we buy houses for cash New Jersey’. Here’s how the process works.
Start by contacting the company. They will need some information about your home. They may also want to schedule a visit to see the home in-person. Once they have enough details about the property, they will make you a cash offer.
If you agree to the offer, you can have the entire transaction taken care of in two weeks or less. You won’t have to deal with scheduling open houses, waiting for offers, and worrying about deals falling through. You can get the money you need and move on with your life.
You may even end up making more than you would with a buyer.
Rising interest rates are making it tough to sell a New Jersey home. Companies that offer ‘we buy houses for cash New Jersey’ deals will allow you to sell your home fast and move on with your life. Will you be using them when you decide to sell your home?