Inventory: The Latest inventory figures are in UP 29% since last year… BUT……. That is up from abysmal levels. The chart below shows the national numbers since January 2017. You can see that active listings were averaging well over 1.2m for years and the big drop started in 2019, well before the pandemic. This was spurred on by First time buyers, Millennials reaching “that” age to buy a home. First time buyers have been the driving force for years in this market and they remove inventory without replacing it causing even more pressure on inventory. So inventory is up, but it is still 11% lower than it was in 2019 and there are 12 million more people in the country since 2019 as well. All supportive of home values.
I also love the quote I dropped in the chart from NAR’s Chief Economist. If you cant read it on the chart: “The record high median home price highlights how American homeowners’ wealthy continues to grow- a benefit of homeownership. The average homeowner’s wealth has expanded by $140,900 over the past 5 years. Multiple years of undersupply are driving the record high home price. Home construction continues to lag population growth.”
RATES: I could pretty much cut and paste from my previous letter. The past few months a graph of rates looks like a sign curve a steady improvement followed by an upward trend and repeat. Tariffs causing inflation fears and strong employment continue to be the driving forces keeping rates at current levels. The employment reports seem to be overstating jobs, but the market and the Fed look at the headline numbers and we aren’t likely to see notable improvement until there’s a few months of inflation reports showing calming along with weaker employment reports. The forecasts still assume we will see rates in the lower 6’s by the year end.
Since 1987…. Helping your clients finance their piece of the American Dream. Do you have anyone you would like me to call?
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If you are looking to purchase or refinance a home in NJ, please give me a call, I can also help you in all 50 states, CMG is licensed throughout the country.
Robert Rauf
Mortgage Loan Originator NMLS# 248937
http://www.RobertRauf.com
or my blog: http://activerain.com/blogs/rrauf
Cell (732)740-0175
RRauf@CMGhomeloans.com
www.RobertRauf.com
Since 1987 I have been helping my clients fulfill their dream of home ownership! CMG Home Loans is located at 222 Commons Way Toms River, NJ 08755. NMLS #1820. Visit www.RobertRauf.com for more information. NJ Mortgages, New Jersey Mortgages, Mortgages in NJ, mortgage in New Jersey, Mortgages in New Jersey, Toms River NJ 08753, Toms River NJ 08755, Brick NJ 08723, Brick NJ 08724 Mortgage in Ocean County NJ, Mortgage in Monmouth County NJ, Jackson NJ 08527, Howell NJ 07731, Lacey 08731 08734, Beachwood 08722 Bayville 08721,
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