Is NJ’s housing market crashing? Here’s the truth from a pro

This is one of the most confusing real estate markets that I’ve ever lived through. Everybody’s sure it’s a seller's market, yet homes are staying on the market longer than ever. Inventory is low, so there is still an occasional bidding war, yet interest rates are high, and the economy is a roller coaster, so plenty of people are sitting on the sidelines.

What exactly is going on this spring in NJ? Robert Dekanski, a real estate professional who understands the market better than anybody, tries to explain in a recent article on New Jersey Real Estate Network.

Here’s the real story. The market is shifting, but not in the dramatic crash-and-burn way some people think. In fact, home prices in NJ are still climbing. The average price for a single-family home is now around $560,000. So no, it’s not getting cheaper. But that doesn’t mean it’s impossible either.

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There are a few things happening at once. First, we’re seeing a little more inventory hit the market, which is a nice change. Buyers finally have more to look at. But the flip side is, mortgage rates are still hanging around the mid-6% range, which is making affordability a real challenge, especially for first-time buyers.

For sellers, it’s still a good time, if you price your home right. This isn’t the wild bidding war era anymore. Buyers are picky, and overpricing will just leave your home sitting. But if it’s priced well, shows nicely, and is in a solid location? It’ll move.

For buyers, yes, it can be frustrating. Prices are high, rates are high, and it’s easy to feel discouraged. But waiting too long could mean paying even more. If you find something that fits 85% of your needs and you can afford it, you’re better off making a move now than trying to time some magical “market drop.”

The bottom line is that the market’s not crashing. It’s just correcting. It’s still very active, but you’ve got to be smart, prepared, and realistic. The sky is not falling! It’s just not as on fire as it was a couple years ago.

And that’s not a bad thing.

Opinions expressed in the post above are those of New Jersey 101.5 talk show host Judi Franco only.

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