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Spring 2018 real estate market forecast

Three good reasons to list your house now

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March 15th, 2018
A senior couple shake the hand of a realtor next to a Sold sign in front of a house.

The weather may not feel like spring, but in the real estate world, the spring market is well under way. If you’ve been considering listing your house, now is the time. And here are three reasons why.

1. It’s a seller’s market according to New Jersey Realtors®. Their July 2017 report concluded:

“We are about two years into a national trend of dropping housing supply and increasing median sales prices. There are some regional variations to the story, but the shift to a predominantly seller’s market is mostly complete. Multiple-offer situations over asking price are commonplace in many communities, and good homes are routinely off the market after a single day.”

2. Mortgage rates may inch upward causing buyers to act now. In 2017, the Mortgage Bankers Association (MBA) updated its long-range finance forecast for the U.S. economy which predicts 30-year mortgage rates.

While New Jersey Realtors® says mortgage rates remain enticingly low, MBA expects rates to continue rising throughout 2018 to somewhere around 4.9% by year’s end. What does this mean for sellers? It means you can expect more serious home buyers to enter the market this spring who want to lock in lower rates.

3. Home prices are still rising, but gains are slowing down. Analysts have predicted that the state’s median home value will rise by a modest 1.5% through September compared to last year’s 5% gain from September 2016 to September 2017.

Locally in Passaic and surrounding counties, where the housing market is much stronger than the broader statewide outlook, we can expect higher gains, according to Anne Connor, the personal moving consultant for Cedar Crest in Pompton Plains.

“The local market is very stable, and bidding wars were common in the 2017 market,” she says. In fact, she adds, the November 2017 market was the strongest since December 2006.

Sellers can most likely expect prices to continue rising due to strong demand and, locally, limited supply. According to New Jersey Realtors®’ third quarter 2017 market report, inventory levels have remained low throughout the state. Passaic County inventory decreased 13.6% from November 2016 to November 2017.

“The Spring 2018 will continue to be a seller’s market and have low inventory,” Connor predicts.

Connor offers complimentary home visits and her expertise in preparing homes for the spring real estate market.

“I have relationships with the top producing real estate agents in your neighborhood who will get you top market value for your home. Priority list members are welcome to my unlimited resources,” she says.

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